HomeMy WebLinkAbout2009-09-10 - Board of Directors Meeting Agenda PacketYorba Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
Thursday, September 10, 2009, 6:30 PM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
John W. Summerfield, President
William R. Mills, Vice President
Paul R. Armstrong
Michael J. Beverage
Ric Collett
4. ADDITIONS /DELETIONS TO THE AGENDA
5. PUBLIC COMMENTS
Any individual wishing to address the Board is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment
when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited
to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five
minutes.
6. PUBLIC HEARING
6.1. Public Hearing to Consider Increasing and Modifying Water Rates
A. President Opens Public Hearing
B. Secretary Provides Proof of Public Hearing
C. Report by General Manager
D. Public Testimony
E. President Closes Public Hearing
F. Discussion
Notification and Correspondence
6.2. Resolutions No. 09 -15, 09 -16 and 09 -17 of the Board of Directors of the Yorba Linda
Water District Amending Resolution No. 07 -17 and Setting Water Rates Effective
September 14, 2009
Recommendation: That the Board of Director adopt the following Resolutions in the
order provided:
1. Resolution No. 09 -15, increasing the commodity charge for potable water
service from $1.79 1HCF to $2.52 1HCF and increasing the basic monthly service
charge from $8.351mo. to $10.20 1mo. for all classes of services, regardless of meter
size.
2. Resolution No. 09 -16, further modifying the commodity rate for single family
residential customers and adopting the block tiered rate structure as presented in
the 2009 Water Rate Report as Alternative 2.
3. Resolution No. 09 -17, establishing the Overage Level 1 ($4.49 1HCF) and
Overage Level 2 ($7.22 1HCF) water rates if the District exceeds its yearly water
supply allocation in FY 2009110.
7. CONSENT CALENDAR
All items listed on the consent calendar are considered to be routine matters, status reports, or documents
covering previous Board instructions. The items listed on the consent calendar may be enacted by one motion.
There will be no discussion on the items unless a member of the Board, staff, or public requests further
consideration.
7.1. Minutes of the Regular Board of Directors Meeting Held August 27, 2009
Recommendation: That the Board of Directors approve the minutes as presented.
7.2. Minutes of the Special Board of Directors Meeting Held September 2, 2009
Recommendation: That the Board of Directors approve the minutes as presented.
7.3. Payments of Bills, Refunds, and Wire Transfers
Recommendation: That the Board of Directors ratify and authorize disbursements in
the amount of $888,271.93.
7.4. Progress Payment No. 1 for Lakeview Sewer Lift Station
Recommendation: That the Board of Directors approve Progress Payment No. 1 in
the amount of $2,925.00 to Schuler Engineering Corp.
7.5. Progress Payment No. 1 for the San Antonio Pressure Reducing Station Upgrade
Project
Recommendation: That the Board of Directors approve Progress Payment No. 1 in
the net amount of $53,156.25.00 to Paulus Engineering, Inc. for construction of the
San Antonio Pressure Reducing Station Upgrades Project, Job No. 200901.
7.6. Progress Payment No. 16 for the Highland Reservoir Replacement Project
Recommendation: That the Board of Directors approve Progress Payment No. 16 in
the net amount of $257,542.74 to Schuler Engineering Corporation and 10%
retention of $28,615.86 deposited to Citizens Business Bank escrow account for
construction of the Highland Reservoir Replacement Project, Job No. 200309.
7.7. Approval of Change Order No. 3 for the Highland Reservoir Replacement Project
Recommendation: That the Board of Directors approve Change Order No. 3 in the
amount of $96,272.43 and 35 additional calendar days to Schuler Engineering
Corporation for construction of the Highland Reservoir Replacement Project, Job
No. 200309.
7.8. Grant Deed to SWEPI LP for 0.025 Acres on Lakeview Avenue
Recommendation: That the Board of Directors authorize the President and
Secretary to execute a Grant Deed, subject to approval as to form by Legal
Counsel, to relinquish to SWEPT LP approximately 0. 025 acres that was acquired in
a land swap with Bastanchury Holding, L.P. (Hover Development Co.) for the
exchange of property at the Lakeview Reservoir and Booster Pump Station site.
8. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board discussions are needed prior to
formal Board action.
8.1. FY 2009/10 Budget Amendment
Recommendation: That the Board of Directors receive and file the addendum to the
FY 2009/10 Budget.
9. REPORTS, INFORMATION ITEMS, AND COMMENTS
9.1. President's Report
9.2. Directors' Reports
9.3. General Manager's Report
9.4. General Counsel's Report
9.5. Future Agenda Items and Staff Tasks
10. COMMITTEE REPORTS
10.1. Executive Administrative - Organizational Committee
(Summerfield /Mills) Alternate: Collett
• Meeting scheduled for September 15, 4:00 p.m. has been rescheduled to September
16, 4:00 p.m.
10.2. Finance - Accounting Committee
(Beverage /Summerfield) Alternate: Mills
Minutes of meeting held September 9, 4:00 p.m. (To be provided at the meeting.)
Meeting scheduled for October 13, 4:00 p.m.
10.3. Personnel -Risk Management Committee
(Armstrong /Collett) Alternate: Summerfield
• Meeting scheduled for September 14, 4:00 p.m.
10.4. Planning- Engineering- Operations Committee
(Mills /Armstrong) Alternate: Beverage
Minutes of meeting held September 3, 4:00 p.m.
Meeting scheduled for October 1, 4:00 p.m. has been rescheduled to October 7, 4:00
p. M.
10.5. Public Information - Technology Committee
(Collett /Beverage) Alternate: Armstrong
Minutes of meeting held September 1, 4:00 p.m.
Meeting scheduled for October 6, 4:00 p.m.
10.6. MWDOC /OCWD Ad Hoc Committee
(Mills /Collett) Alternate: Summerfield
Meeting scheduled for September 22, 4:00 p.m.
10.7. City of Placentia Ad Hoc Committee
(Beverage /Vecchiarelli)
• Meeting scheduled for September 17, 4:00 p.m.
10.8. Citizens Advisory Committee
Meeting scheduled for September 28, 8:30 a.m.
11. INTERGOVERNMENTAL MEETINGS
11.1. Yorba Linda City Council, September 1 (Mills)
11.2. MWDOC /MWD Workshop, September 2 (Staff)
11.3. OCWD Board, September 2 (Staff)
11.4. Yorba Linda Planning Commission, September 9 (Collett)
12. BOARD OF DIRECTORS ACTIVITY CALENDAR
12.1. Meetings from September 11, 2009 thru October 31, 2009
13. CONFERENCES AND SEMINARS
13.1. Diamond Valley Lake Tour - September 25, 2009
Recommendation: Authorize Directors and such staff members of the District as
approved by the General Manager to attend the tour.
13.2. CA -NV AWWA Fall Conference - October 5 -8, 2009
Recommendation: Authorize Directors and such staff members of the District as
approved by the General Manager to attend the conference.
14. ADJOURNMENT
14.1. The next regular meeting of the Board of Directors will be held September 24, 2009 at
8:30 a.m.
Items Distributed to the Board Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non - exempt public records that relate to open session agenda items
and are distributed to a majority of the Board less than seventy -two (72) hours prior to the meeting will be available for
public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870,
during regular business hours. When practical, these public records will also be made available on the District's internet
website accessible at http: / /www.ylwd.com /.
Accommodations for the Disabled
Any person may make a request for a disability - related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714 - 701 -3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885 -0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability - related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
ITEM NO. 6.2
AGENDA REPORT
Meeting Date: September 10, 2009 Budgeted: N/A
To: Board of Directors
From: Ken Vecchiarelli, General
Manager
Presented By: Ken Vecchiarelli, General Dept: Administration
Manager
Reviewed by Legal: Yes
Prepared By: Pat Grady, Assistant General
Manager
Subject: Resolutions No. 09 -15, 09 -16 and 09 -17 of the Board of Directors of the Yorba
Linda Water District Amending Resolution No. 07 -17 and Setting Water Rates
Effective September 14, 2009
SUMMARY:
Attached for the Board's consideration are two resolutions that revise the District's monthly basic
service charge and the water commodity charge, effective September 14, 2009 and a third
resolution that resets these rates if the District exceeds its yearly water supply allocation in FY
2009/10. In addition, the 2009 Water Rate Report, which was received and filed by the Board on
September 2, 2009, is attached as supporting material.
Notice of the September 10, 2009 Public Hearing, along with the proposed rate increase, was
provided to District customers on July 23, 2009 by mail, pursuant to Proposition 218. At the time this
staff report was prepared, the District had received written protests from approximately 70
customers. The majority of these protests oppose any increase at this time. The second most
frequent protest is against the tiered rate alternative for single family residential customers,
particularly those customers with large lots, horse properties or large landscaping and irrigation
needs.
STAFF RECOMMENDATION:
That the Board of Director adopt the following Resolutions in the order provided:
1. Resolution No. 09 -15, increasing the commodity charge for potable water service from
$1.79 /HCF to $2.52 /HCF and increasing the basic monthly service charge from $8.35/mo. to
$10.20 /mo. for all classes of services, regardless of meter size.
2. Resolution No. 09 -16, further modifying the commodity rate for single family residential
customers and adopting the block tiered rate structure as presented in the 2009 Water Rate Report
as Alternative 2.
3. Resolution No. 09 -17, establishing the Overage Level 1 ($4.49 /HCF) and Overage Level 2
($7.22 /HCF) water rates if the District exceeds its yearly water supply allocation in FY 2009/10.
COMMITTEE RECOMMENDATION:
Both the Finance - Accounting Committee and the Revenues & Rates Ad -hoc Committees have had
previous discussions related to the District's budget and the proposed water rate adjustments. The
full Board of Directors also held a workshop and special meeting to discuss the proposed rate
adjustments. Additionally, the Citizens Advisory Committee has reviewed the rate proposals and
supports Staff's recommendation for a tiered water rate structure for the commodity charge
applicable to single family residential customers.
DISCUSSION:
The 2009 Water Rate Report identifies and provides the rationale and justification for a water rate
increase for both the monthly basic service charge and the commodity charge. The rate increase is
primarily driven by the District's FY 2009/10 Budget, which includes unprecedented increases in the
Variable Water Costs imposed on the District by its water wholesaler suppliers. These costs, along
with a reduction in revenues due to mandatory water conservation, are beyond the District's control
and are the primary factors for the rate increase.
The District's water rates consist of two components, the basic monthly service charge and the
water commodity charge. The 2009 Water Rate Report includes recommendations for increases in
both components and provides the calculations for each derived directly from the District's costs for
providing reliable water service to the community and as identified in further detail in the Adopted
Budget for FY 2009/10.
Currently, the basic monthly service charge is $8.35/mo. The 2009 Water Rate Report recommends
a $1.85 increase per month (22% increase) to $10.20 /mo. The purpose of the monthly service
charge is to pay for a portion of the District's fixed expenses, which are incurred regardless of the
amount of water purchased and sold to the customers. These expenses include debt obligation
payments, supplies, services, salaries and benefits for system maintenance and for capital project
administration and management. At $10.20 /mo., the basic service charge generates enough
revenue to cover approximately 25% of the District's fixed expenses.
The remaining costs of the District must therefore be supported by the commodity charge. Two
alternatives for the commodity charge are identified in the 2009 Water Rate Report. The first
consists of a flat commodity charge of $2.52 per HCF or Unit (one HCF or Unit equals one hundred
cubic feet or 748 gallons), an increase of $0.73 from the current rate of $1.79 per Unit.
The second alternative is proposed for single family residential accounts. The alternative is a
conservation based block tiered rate structure consisting of five tiers, ranging from $2.17 to $3.49
per Unit as follows:
Tier 1 (1 -10 units) $2.17 /Unit
Tier 2 (11 -30 units) $2.50 /Unit
Tier 3 (31 -60 units) $2.83 /Unit
Tier 4 (61 -80 units) $3.16 /Unit
Tier 5 (over 80 units) $3.49 /Unit
Due to water shortages in the State of California and the increasing cost of both import and
groundwater, a tiered water rate structure further supports the conservation effort, as opposed to
the flat commodity charge. Conservation is critical to ensuring the District continues its ability to
provide a reliable water source to the community. For this reason, Staff recommends the tiered rate
structure for single family residential cutsomers, which represents over 90% of the District accounts.
Three resolutions have been included with this report. One resolution establishes the new monthly
basic service charge and the new flat commodity charge. The second resolution establishes the
block tiered water rate structure for single family residential customers. The third resolution resets
the water commodity charges if the District exceeds its water supply allocation for the year. In all
three resolutions, the monthly basic service charge is established at $10.20 /mo.
PRIOR RELEVANT BOARD ACTION(S):
The District's FY 2009/10 Budget was adopted on June 25, 2009 and received and filed the 2009
Water Rate Report on September 2, 2009. The Board held a workshop to discuss and consider
water rates on June 2, 2009 and discussed a presentation on proposed water rates at their meeting
on August 13, 2009. The Board of Directors set the public hearing at their Board meeting on June
11, 2009 and rescheduled this hearing at their meeting on July 23, 2009 setting the hearing date to
September 10, 2009.
ATTACHMENTS:
Description:
Type:
2009_YLWD_ Rate _Study.pdf
2009 Water Rate Report
Report(s)
Resolution 09 -15 Setting Water Rates.doc
Resolution No. 09 -15
Resolution
Resolution 09 -16 Setting Water Rates.doc
Resolution No. 09 -16
Resolution
Resolution 09-17 Setting_ Water Rates.doc
Resolution No. 09 -17
Resolution
Yorba Linda Water District
Water Rate Report
September /2009
YLWD Water Rate Report — September 2009
Table of Contents
Background............................................................................ ............................... 3
Purposeand Scope ................................................................ ..............................4
Proposition 218 Compliance ................................................... ..............................5
Service Classifications ............................................................ ..............................5
Historical Water Rates ............................................................ ..............................6
ExistingWater Rates .............................................................. ..............................6
Operating and Non - Operating Expenses ................................ ..............................7
Vehicle and Equipment Expenses .......................................... ..............................8
Depreciation Expense ............................................................. ..............................9
Capital Improvement and Replacement Programs ................. ..............................9
Operating Reserves ............................................................... .............................10
Revenue Requirements and Revenue Targets ...................... .............................10
Proposed Water Rate Increase .............................................. .............................11
Alternative 1 — Flat Commodity Rate for all Classes of Service ..........................12
Alternative 2 - Block Tiered Rate Structure for Single - Family Residential Class. 13
Wholesale Water Charges above Allocation Levels ............... .............................18
Conclusions and Recommendations ...................................... .............................19
Exhibit "A" —
Proposition 218 Notice ...................................... .............................21
Exhibit "B" —
Breakdown of Expenses and Outlay .................. .............................23
Exhibit "C"
— Historical and Breakdown of Variable Water Costs ........................24
Exhibit "D"
— Variable Water Costs Budget Assumptions ....... .............................25
Exhibit "E" —
Five Year Capital Improvement Program .......... .............................26
Page 2
YLWD Water Rate Report — September 2009
Background
Yorba Linda Water District ( "District ") provides water and partial sewer service to
approximately 23,000 homes and businesses within a 23 square -mile territory
serving the cities of Yorba Linda, portions of Brea, Anaheim, and Placentia, and
a small unincorporated area in the County of Orange. The District is an
independent California Special District formed pursuant to California Water Code
Division 12, Section 30,000 et seq.
In 1959, local residents voted to organize the Yorba Linda County Water District
by authorizing the issuance of $1,900,000 in general obligation bonds to acquire
the assets of the Yorba Linda Mutual Water Company. From 1959 to the mid -
1970's, the District's service area changed from an agricultural to a residential
community. In 1978, the District expanded its boundaries by annexing nearly
7,000 acres of undeveloped land north of the Santa Ana River between Fairmont
Boulevard on the west, and the San Bernardino /Orange County line on the east.
The newly annexed territory was divided into two areas of benefit known as
Improvement District No. 1 and Improvement District No. 2. This expansion
increased the total area covered by the District to about 13,900 acres, or about
22 square miles.
The District's service area can best be described as a suburban residential
bedroom community. According to demographic data from a recent survey, about
60% of the District's residents are classified as either professional or white collar
workers. Retail commercial businesses are located at key points throughout the
service area. No heavy industrial or manufacturing occurs within the District's
boundaries. There are, however, several small commercial /light industrial centers
located in the southern and eastern portions of the District.
Sources of water supply for the District include both groundwater and imported
water. Groundwater is pumped from the Orange County Aquifer, and currently
accounts for approximately 50% of the District's total water supply. The District
also obtains import water from the Colorado River and northern California
through the Municipal Water District of Orange County, the local wholesaler for
Metropolitan Water District.
The water system consists of more than 600 miles of various diameter water
pipes, 13 reservoirs with a combined capacity of about 54 million gallons and
nine water wells with a combined capacity of about 20 million gallons per day. In
addition, there are three connections for imported water supply with a combined
capacity in excess of 50 million gallons per day.
Page 3
YLWD Water Rate Report — September 2009
Purpose and Scope
The main purpose of this study is to design water rates for FY 2009/10 based on
cost of service which will generate adequate revenues to support operations and
maintenance (O &M) costs, a portion of capital funding, debt service and reserve
requirements. This report will also provide the justification for the recommended
rate structure with the goal of generating the revenue needs of the District.
The existing water rate structure includes a monthly basic service charge and a
commodity charge. The combination of these two charges generate the majority
of the revenues required to cover the expenses of providing safe and reliable
water service to the community for domestic, irrigation and fire protection
purposes. Other revenue sources include the District's share of ad valorem
property taxes, revenue from fees, leases and interest on investments. The
scope of this Water Rate Report does not address the District's sewer rate or
sewer related activities, as it focuses only on the water enterprise.
The 2009 Water Rate Report will address the District's current rate structure, the
revenues and expenses from the District's FY 2009/10 budget and the
methodology for a recommended rate structure that is sufficient to cover the
District's expenditures.
As identified in the FY 2009/10 Budget, the District has instituted cost saving
measures to reduce or maintain expenses while maintaining or in some cases,
increasing the level of service to customers. These cost reductions and service
improvements include the following:
• The number of authorized full time employees has been reduced by
one position
• Six authorized positions will remain vacant and have not been funded
in FY 2009/10
• No cost of living adjustments for employees were budgeted for FY
2009/10
• The total number of vehicles in the District's fleet will be reduced by
four
• Meters are now read on a monthly basis and customers billed within
seven days
• On line bill pay and web based bill viewing will be available in
September
• Web based agenda posting and report downloading will be improved
• Increased customer service outreach, public information and programs
supporting water conservation and water use efficiency
Page 4
YLWD Water Rate Report — September 2009
Two options for the water commodity charge will be presented to the Board of
Directors for consideration. One option includes a flat commodity charge, similar
to the existing rate with an adjusted amount. The second option is a five - tiered
water commodity charge designed to provide a lower rate for critical water usage
and to promote water conservation for non - essential use. In both cases, the
methodology and recommendation for an adjusted monthly service charge
remains the same.
A public hearing for the proposed rate adjustments is scheduled for September
10, 2009. Should the Board of Directors adopt a rate change, the effective date
is scheduled to be September 14, 2009.
Proposition 218 Compliance
Proposition 218 is applicable to the District and compliance includes developing
a nexus between the proposed rates and the costs for providing service, in
addition to providing notification to the rate payers of a proposed rate adjustment
45 days prior to a public hearing. Additionally, the rate payers must be provided
opportunity to protest the rate adjustments in writing. On July 23, 2009, District
customers were notified of the September 10th public hearing by means of a
mailed notice. The notice provided details of the proposed rate adjustment along
with the protest procedures. A sample of the notice is attached as Exhibit "A ".
Service Classifications
The District currently provides water service to four primary classes. The
following is a breakdown of each class, including the number of services and
percentages within each class as of June 30, 2009.
Service Classifications Services % of Services
Residential (Single - Family)
21,582
92%
Residential (Multi - Family)
228
1%
Commercial
799
3%
Landscape & Irrigation
831
4%
Total 1 23,440 100%
Page 5
YLWD Water Rate Report — September 2009
Historical Water Rates
Since 2004, the District has implemented four rate adjustments. The rates which
became effective on January 1, 2008, are currently in place today. The following
table provides a history of rate modifications since 2004:
of Ch
Basic Monthly Service Charge
Commodity Charge
Existing Water Rates
Effective
Effective
Effective
Effective
0110112004
0110112005
0710112005
0110112008
$6.70
$7.47
$7.92
$8.35
$1.33 /HCF
$1.48 /HCF
$1.57 /HCF
$1.79 /HCF
The current water rate structure includes a fixed basic monthly service charge of
$8.35 per meter. Each water meter, regardless of size and water usage, is
charged this minimum basic monthly service charge since it receives the benefit
of service on demand. This basic monthly service charge generates revenue to
cover a small portion (approximately 22% in prior years) of the District's fixed
expenses. The justification for the basic monthly service charge is that expenses
related to operating and maintaining the water system infrastructure are incurred
regardless of the amount of water produced and delivered to the District's
customers. These expenses include supplies and services, salaries and
benefits, and expenditures related to the District's debt service. The debt service
includes principle and interest payments on money borrowed to pay for capital
improvement and replacement projects. The District's total debt service for FY
2009/10 is approximately $2.8M.
The current commodity charge of $1.79 /HCF is the amount the District charges
for each billing unit of water used, which is equivalent to one hundred cubic feet
or 748 gallons. This charge generates the majority of the District's total revenue
and is intended to cover the balance of the fixed expenses as well as the variable
expenses which include the costs to purchase water and the energy required to
transport this water throughout the District's service area. The FY 2009/10
Budget identifies basic assumptions for the fiscal year's total expenses and total
revenues. The water enterprise revenues calculated in the budget document
were generated using the existing water rate structure and showed a net deficit
of $8,617,261, not including principle repayment of debt and outlay for vehicles
and equipment. The net loss also does not include outlay for capital
improvements and replacements, which will be funded from reserves restricted
for these capital outlays. The magnitude of this deficit underscores the
importance of establishing a water rate that will generate the revenue required to
fund the continuation of vital services to the community.
Page 6
YLWD Water Rate Report — September 2009
Operating and Non - Operating Expenses
The Adopted Budget for FY 2009/10 indentifies the total expenses of the District
and allocates these expenses appropriately to the water and sewer enterprise
funds. The cost to provide water service includes operating and non - operating
expenses and capital outlay. Operating expenses include the day to day costs to
purchase, deliver water to each service connection and to operate and maintain
the water utility infrastructure. Operating expenses also include depreciation of
the District's capital assets including reservoirs, booster pump stations, wells,
pipelines, buildings, meters, fire hydrants and other appurtenances. Non -
operating expenses and capital outlay include principle and interest payments on
debt service, vehicle and equipment purchases and capital improvement and
replacement expenditures. Exhibit "B" provides a breakdown of the major
expenses and outlay components.
Variable Water Costs
The Variable Water Cost components include the cost of water the District pays
to the Municipal Water District of Orange County (MWDOC) for import water,
assessments paid to Orange County Water District (OCWD) for local
groundwater replenishment and power costs. The costs associated with each of
these components are beyond the District's control as these expenses are
primarily determined by external entities. In FY 2009/10, Variable Water Costs
are anticipated to increase an unprecedented $2.2M from the previous fiscal
year. Attached as Exhibit "C" is a graph depicting historical Variable Water Costs
since FY 2006/07 and a breakdown with each variable cost component.
Import water costs increased 14.1% effective January 1, 2009 and will increase
another 19.7% effective September 1, 2009. Furthermore, it is expected this cost
will rise another 21.5% by January 1, 2011.
While the groundwater replenishment assessment (RA) increased by only 11.7%
over the past two years, the basin production percentage (BPP), which
establishes the amount of groundwater each agency can pump at the established
RA, dropped dramatically from 80.1% in FY 2007/08 to 62% for FY 2009/10.
This results in the District having to buy a higher percentage of water from the
more expensive import water source. The FY 2009/10 Budget included
assumptions which were the basis for the Variable Water Costs. An excerpt of
these budget assumptions is attached as Exhibit "D ".
The table below presents a summary of the budgeted operating and non -
operating expenses and other sources of outlay for FY 2009/10.
Page 7
YLWD Water Rate Report — September 2009
Budget
FY 2009/10
Operating Expenses
Depreciation & Amortization
$3,945,750
Variable Water Costs (GW, Import & Power)
12,612,700
Salaries and Benefits
6,538,008
Supplies & Services
4,032,096
Subtotal
$27,128,554
Non - Operating Expenses
Interest on Long Term Debt
$1,981,300
Other
194,500
Subtotal
$2,175,800
Other Sources of Outlay
Principal of Long Term Debt
$825,000
Vehicles & Equipment
628,500
Subtotal
$1,453,500
Total
$30,757,854
Vehicle and Equipment Expenses
The Adopted FY 2009/10 Budget also identifies $628,500 in vehicle and
equipment expenses, including purchases to replace vehicles that have
surpassed their useful life and have become a maintenance liability. Also
included in this category of expenses are new portable pumps and a portable
generator that allow the District to augment system capacity during emergencies,
and periods of water and power supply outages. These equipment purchases
improve the District's reliability and service to its customers. Other expenses
related to capital outlay include computer hardware and software upgrades
required to complete conversion of the billing, accounting and human resources
software systems and install a new computerized maintenance management
software system. These additions and conversions will standardize and update
the District's technological capability to track and manage District accounting
functions more effectively and efficiently.
In water rate discussions with the Board of Directors over the past three months,
the Board, for FY 2009/10, has decided to fund the vehicle and equipment outlay
from reserves, which are the same funding sources for other capital improvement
and replacement programs.
Page 8
YLWD Water Rate Report — September 2009
Depreciation Expense
The District depreciates and amortizes expenses for capital improvement and
replacement projects as well as vehicles and equipment with a purchase value in
excess of $5,000. This is done in accordance with generally accepted
accounting principles (GAAP) and appropriate government accounting practices.
In FY 2009/10, depreciation in the water enterprise is estimated to increase to
nearly $3.95M as shown in the expenses summary table. This amount
represents approximately 13.5% of the District's operating and non - operating
expenses. While this expense does not affect the District's cash flow, it does
affect the value of net assets.
In water rate discussions with the Board of Directors over the past three months,
Staff was directed to defer 75% of the depreciation expense in calculating the
revenue needs of the District. For this reason, the Water Rate Report considers
a water rate that will generate only enough revenue to cover 25% of the
depreciation expense.
Currently, the District is in the process of developing an Asset Management Plan
which will address the funding for replacing facilities in the future, including, but
not limited to recommendations related to depreciation. When completed, the
Board will re- evaluate the funding recommendations of the plan. The Asset
Management Plan is scheduled to be completed by no later than April /2010.
Capital Improvement and Replacement Programs
In addition to the expenses previously identified, the District is continuing with its
aggressive and much needed capital improvement and replacement program.
The adopted Budget for FY 2009/10 identifies $44.6M in capital projects over the
next five years with $34.5M of this total estimated for outlay in FY's 2009/10 and
2010/11. As stated previously, these projects and programs will be funded from
previous general obligation bond fund balances (Improvement Districts 1 and 2
GO Bonds) and the 2008 Revenue Bonds which are currently in District reserves
restricted for capital projects. In addition to these funds, with the adoption of the
FY 2009/10 budget, the Board restricted the use of the Annexation Fund
balance, which was previously reserved to offset yearly operating expenses, to
fund the capital improvement program. Attached as Exhibit "E ", is a listing of the
District's Capital Improvement Program.
Page 9
YLWD Water Rate Report — September 2009
Operating Reserves
The Water Operating Fund represents cash and investments dedicated to fund
operating expenses. Revenue in excess of requirements to fund operating
expenses would be invested and dedicated to reserves. Under the current rate
structure, the Water Operating Fund has been decreasing substantially over the
past few years, with a projected ending FY 2008/09 negative balance of $4.5M.
The Governmental Finance Officers Association (GFOA) recommends a
minimum operating (General Reserve) reserve of 5% to 15% of operating
revenues or one to two months of operating expenditures (one to two months
translates into about 8% to 17% of operating expenditures for the fiscal year).
Using the 5 -15% of operating revenue criteria for FY 2009/10, the District would
be prudent to maintain a balance of $1,034,355 - $3,103,064 in its Water
Operating Reserve. Using the 8 -17% of operating expenditures criteria (which is
more commonly used in local governments) the District should maintain an
operating reserve balance of $2,344,248 - $4,981,740 during FY 2009/10.
The Water Operating Reserve is projected to be approximately negative $4.5M at
the close of the FY 2008/09. A one -time transfer of Annexation Reserves has
been approved to bring the Water Operating Reserve to zero. If the Board does
not adjust the current rates as proposed, the District is budgeted to draw down
the Water Operating Reserves to a negative ending balance of $5.5M as of June
30, 2010.
Alternatively, if the Board adopts the proposed rate structure, the District is
projected to have a positive ending balance in the Water Operating Reserve at
year -end of $986,438, which is 25% depreciation expense. Although this amount
does not quite meet the standards for reserves most commonly followed, it is
preferable to the alternative if the proposed rate structure is not adopted.
Revenue Requirements and Revenue Targets
The development of the water rate is determined by the expenses derived in the
Adopted Budget for FY 2009/10. The approved budget supports the short and
long term goals and established objectives of the District and the estimated costs
to achieve these objectives, to provide reliable service to the community. As
shown in the previous table, the District's water operating and non - operating
expenses for FY 2009/10 are estimated to be $30,757,854. The net revenue in
FY 2009/10 using the existing water rate structure and other identified revenue
sources totals $20,687,093. The sum of these figures nets a shortfall of
$10,070,761.
Page
10
YLWD Water Rate Report — September 2009
As identified previously in the Vehicle and Equipment and Depreciation sections
of this report, the Board of Directors has directed staff to defer 75% of the
depreciation expense this year ($2,959,312) and has agreed to fund the vehicle
and equipment outlay ($628,500) from reserves. These two decisions reduce the
total expenses to $27,170,042, and the revenue shortfall to $6,482,949.
With the total adjusted expenses identified, the non - operating revenue identified
in the FY 2009/10 Budget of $1,325,400 is deducted from the total adjusted
expenses of $27,170,042. This results in a net revenue target of $25,844,642,
which represents the amount of revenue that must be generated from the water
rates, which is a combination of the basic monthly service charge and the
commodity rate.
Budget
FY 2009/10
Adjusted Operating Expenses
Adjusted Depreciation & Amortization (25% only) $986,438
Variable Water Costs (GW, Import & Power) 12,612,700
Salaries and Benefits 6,538,008
Supplies & Services 4,032,096
Subtotal $24,169,242
Non - Operating Expenses
Interest & Principal on Long Term Debt $2,806,300
Other 194,500
Subtotal $3,000,800
Non - Operating Revenue ($1,325,400)
Net Revenue Requirements $25,844,642
Proposed Water Rate Increase
As previously mentioned, the water rates are made up of the basic monthly
service charge and the commodity charge. The basic monthly service charge
was established in prior years to cover 22% of the fixed operating expenses. For
FY 2009/10, this report proposes that the basic monthly service charge cover
25% of these fixed costs, which includes the adjusted depreciation, salaries,
benefits, supplies and services, for a total of $2,889,136. The budget assumes
the District will serve an average of 23,680 accounts throughout the year. Based
on this, the basic monthly service charge is recommended to be $10.20 per
month for all meters, regardless of size, class of service, or water usage.
Page
11
YLWD Water Rate Report — September 2009
Adjusted Depreciation & Amortization
Salaries and Benefits
Supplies & Services
Total Revenue from Monthly Service Charge
Budget
FY 2009/10
25%
$986,438
$246,610
6,538,008
1,634,502
4,032,096
1,008,024
$2,889,136
$2,889,136 / 23,680 accounts / 12 months = $10.20 1month
The balance of the revenue, or approximately $22,955,500 must then be
generated by the commodity charge.
Alternative 1- Flat Commodity Rate f or all Classes of
Service
The flat rate commodity charge would apply to all classes of service, regardless
of meter size. The commodity charge is calculated by dividing the revenue
required, less the revenue generated from the basic monthly service charge, by
the number of billing units (hundred cubic feet of water) projected to be sold in
FY 2009/10. This amounts to $2.52 per billing unit.
$22,955,500 / 9,091,843 billing units = $2.52 1Unit
Under this scenario, every $.01 within the commodity rate generates
approximately $90,900 in revenues. The following table is a breakdown of the
various components that develop the recommended $2.52 commodity rate:
Page
12
YLWD Water Rate Report — September 2009
Deductions
Basic Monthly Service Charge Collected ($2,889,136) ($0.32)
Depreciation (75% - Deferred) - FY 2009/10 (2,959,313) (0.33)
Vehicles & Equipment (Funded by reserves) (628,500) (0.07)
Other Non - Operating Revenue (Prop. Tax & Misc) (1,325,400) (0.15)
Total Deductions ($7,802,349) ($0.86)
Net Commodity Rate $22,955,505 $2.52
Alternative 2 - Block Tiered Rate Structure for Single -
Family Residential Class
Tiered water rate structures are proven to encourage water conservation
practices. With the restriction of wholesale water supplies and resulting
mandatory water conservation measures, Staff studied an alternative to the flat
commodity charge and modeled the impacts of a block tiered rate on water
revenues for single family residential accounts. This class of customers
represents over 91 % of the total customer base, 71 % of the total water demands
and the equivalent associated revenue. All other classes of service, which are
not single family residential customers, would be charged the flat commodity
charge of $2.52 /Unit. The following tiered structured is recommended should the
Board choose this alternative:
Tier I
Tier II
Tier III
Tier IV
Tier V
Consumption
FY 2009/10
1 — 10 units
2.17
Budget
$ /Unit
Expenses & Outlay (Excludes CIP)
2.83
61 — 80 units
Variable Water Costs
$12,612,700
$1.39
Salaries & Benefits
6,538,008
0.72
Supplies & Services
4,032,096
0.44
Depreciation (100 %)
3,945,750
0.43
Debt Obligations (Principal & Interest)
2,806,300
0.31
Vehicles & Equipment
628,500
0.07
Other
194,500
0.02
Total Expenses & Outlay
$30,757,854
$3.38
Deductions
Basic Monthly Service Charge Collected ($2,889,136) ($0.32)
Depreciation (75% - Deferred) - FY 2009/10 (2,959,313) (0.33)
Vehicles & Equipment (Funded by reserves) (628,500) (0.07)
Other Non - Operating Revenue (Prop. Tax & Misc) (1,325,400) (0.15)
Total Deductions ($7,802,349) ($0.86)
Net Commodity Rate $22,955,505 $2.52
Alternative 2 - Block Tiered Rate Structure for Single -
Family Residential Class
Tiered water rate structures are proven to encourage water conservation
practices. With the restriction of wholesale water supplies and resulting
mandatory water conservation measures, Staff studied an alternative to the flat
commodity charge and modeled the impacts of a block tiered rate on water
revenues for single family residential accounts. This class of customers
represents over 91 % of the total customer base, 71 % of the total water demands
and the equivalent associated revenue. All other classes of service, which are
not single family residential customers, would be charged the flat commodity
charge of $2.52 /Unit. The following tiered structured is recommended should the
Board choose this alternative:
Tier I
Tier II
Tier III
Tier IV
Tier V
Consumption
Charge per Unit
1 — 10 units
2.17
11 — 30 units
2.50
31 — 60 units
2.83
61 — 80 units
3.16
81 + units
3.49
Page
13
YLWD Water Rate Report — September 2009
The expense and revenue estimates in the FY 2009/10 Budget are based on a
fixed amount of water supplies available at wholesale pricing schedules.
Agencies that exceed these allocations may still purchase imported water and
local groundwater supplies, but at substantially inflated prices amounting to
approximately three times and five times the new wholesale prices. The water
supplies allocated to the District in FY 2009/10 from its wholesale suppliers
amounts to approximately 21,970 acre feet, which was derived by the suppliers
by averaging the three year water demands in calendar years 2004 through 2006
(the baseline). From this baseline, the wholesale water supplies were cut by
15% for FY 2009/10 with a small allowance added back for growth and past
conservation practices.
Historically, water sales fall short of water purchases on the average by 3 to 8
percent. This difference is labeled as unaccounted for water and is comprised of
water losses due to breaks, leaks, mainline flushing for water quality purposes,
water used for fire protection purposes, water used for District financed
construction projects, street and sewer cleaning, and losses from stuck and
inaccurate /aging meters. The FY 2009/10 budget uses 5% as the estimated
unaccounted water loss to determine the estimated revenue generated through
the metered water sales. This results in 20,872 acre feet (9,091,843 billing units)
in water sales.
In developing a tiered rate alternative, Staff sampled the historic water use
records and selected the single year that matched closest to the water use
estimates for FY 2009/10. The closest match was FY 2005/06 with total water
sales of 9,122,629 HCF. With this data set, Staff ran an annual revenue
calculation with a flat commodity rate of $2.52 and determined the proportion of
the total revenue generated by each of the customer classes. The results of
these calculations are shown below.
FISCAL YEAR 2005/06 Historical Data
# of % Billing Units %
Service Classifications Services Services Consumption Consumption
Residential (Single - Family)
21,193
92.2%
6,506,631
71.3%
Residential (Multi - Family)
225
1.0%
197,314
2.2%
Commercial
791
3.4%
748,742
8.2%
Landscape & Irrigation
782
3.4%
1,669,942
18.3%
Total 1 22,991 100% 9,122,629 100%
Page
14
YLWD Water Rate Report — September 2009
Staff also performed a statistical comparison using the historical data sets from
Calendar Years 2004 through 2006. This is consistent with the period that the
District's wholesale supplier used to determine the FY 2009/10 baseline water
supply allocation. The average of the three year data did not differ significantly
from the FY 2005/06 data set as shown in the table below. Using the three year
historical data set, staff also tallied average monthly water usage (demands) for
the single family residential customer class and used this data to establish water
use blocks or ranges for the tiered water rate structure.
CALENDAR YEARS 2004 - 2006 Average Historical Data
# of % Billing Units %
Service Classifications Services Services Consumption Consumption
Residential (Single - Family)
21,014
92.2%
6,608,385
71.0%
Residential (Multi - Family)
223
1.0%
233,248
2.5%
Commercial
790
3.4%
789,600
8.5%
Landscape & Irrigation
773
3.4%
1,671,023
18.0%
Total 1 22,800 100% 9,302,256 100%
Using the average water demands, staff developed a tiered block rate structure
that is revenue neutral within the District's water allocation for FY 2008/09, when
compared to the revenue generated by the flat commodity charge for the
baseline allocation. The block rate structure generates a higher revenue stream
proportionately to the water used within the higher blocks or tiers. The block rate
structure also allows for a base indoor use of up to ten units per month at a
substantially reduced rate of $2.17 /HCF (Tier 1), when compared to the
proposed flat commodity charge of $2.52 /HCF. This first tier, while benefiting all
customers, is particularly desirable to customers that tend to use much less
water on the average. The next block or tier of use is for 11 to 30 units per
month at a slightly discounted rate of $2.50 /HCF (Tier 2). This block represents
the average customer use with over 72% of the residential customers falling in or
below this range on the average each month over the three year period tested.
The vast majority of water used in this and subsequent ranges is for outdoor,
irrigation use, which is primarily a non - essential water use.
The table below shows the average usage patterns over the data set studied and
the associated Tiers 1 through 5 selected. The results are also shown
graphically in the chart below the table.
Page
1s
YLWD Water Rate Report - September 2009
The commodity rate in each tier was adjusted through trial and error, using the
FY 2005/06 data set and testing various commodity charges through this data set
to model equitable tiered ranges and appropriate revenue percentages within
each range. If the revenue generated in any range fell short of revenue
requirements, it was adjusted slightly and the model was rerun. If the revenue
inside a particular tier ran too high above the equity range, the rate was adjusted
down proportionately. The Modeling Results table shows that the revenue
generated using the tiered rate structure totals approximately $16.28M, which is
consistent with the target revenue (71%) of the total $22.96M revenue target
required from the commodity charge. The balance of the revenue from the
commodity charge is generated by other class customers including multi - family
residential, irrigation, and commercial accounts using the flat commodity charge
of $2.52 /HCF.
Single Family Residential Water Demands for Calendar Years 2004 - 2006
Page
16
Ave.
#
%
Usage
Accts
Total
Cum %
Consumption
% Total
Cum %
Tier 1
0 -10
3,607
16.7%
16.7%
242,815
3.7%
3.7%
11 -20
6,350
29.4%
46.1%
1,211,129
18.6%
22.3%
Tier 2
21 -30
5,708
26.4%
72.5%
1,715,584
26.3%
48.6%
31 -40
2,926
13.5%
86.1%
1,227,352
18.8%
67.5%
Tier 3
41 -50
1,412
6.5%
92.6%
760,863
11.7%
79.1%
51 -60
697
3.2%
95.8%
460,136
7.1%
86.2%
Tier 4
61 -80
574
2.7%
98.5%
468,955
7.2%
93.4%
81 -100
184
0.9%
99.3%
196,255
3.0%
96.4%
Tier
101 -200
132
0.6%
100.0%
202,911
3.1%
99.5%
201 -500
10
0.0%
100.0%
31,984
0.5%
100.0%
21,600
100%
6,517,984
100.0%
Page
16
YLWD Water Rate Report — September 2009
Percentage Accounts by Range
CY 2004 -06
(Single Family Residential Accts)
a, 35%
C
29.4%
30% 26.4%
.N 25%
v
Q 20%
L
E 15%
0
10%
0 5% 3.2% 2.7% 0.9% 0.6% 0.0%
0%
�o h0 �O �o �o �o �O
Average Usage Range (CCF)
FY 2005/06 Tiered Rate Model Results (SFR)
Per Unit Consumption Revenue % Total Cum %
Tier 1 1 -10 units
$2.17
2,316,582
$ 5,026,983
30.9%
30.9%
Tier II 11 -30 units
$2.50
2,598,951
$ 6,497,378
■ %Total
Tier 1
Tier III 31 -60 units
$2.83
Tier 2
$ 3,096,020
19.0%
Tier 3
Tier 4
Tier 5
16.7%
$ 674,177
4.1%
93.9%
Tier V 80+ units
$3.49
0
$ 990,291
6.1%
100.0%
Total
6,506,63 1
$ 16, 284, 849
6.5%
FY 2005/06 Tiered Rate Model Results (SFR)
Per Unit Consumption Revenue % Total Cum %
Tier 1 1 -10 units
$2.17
2,316,582
$ 5,026,983
30.9%
30.9%
Tier II 11 -30 units
$2.50
2,598,951
$ 6,497,378
39.9%
70.8%
Tier III 31 -60 units
$2.83
1,094,000
$ 3,096,020
19.0%
89.8%
Tier IV 61 -80 units
$3.16
213,347
$ 674,177
4.1%
93.9%
Tier V 80+ units
$3.49
283,751
$ 990,291
6.1%
100.0%
Total
6,506,63 1
$ 16, 284, 849
Page
17
YLWD Water Rate Report — September 2009
Wholesale Water Charges above Allocation Levels
The proposed water rates developed in this report were derived using the
expenses and revenues identified in the approved FY 2009/10 Budget. The
projected water rate revenues fall substantially short of entirely funding the cost of
providing services as identified in the Budget, primarily in the depreciation
component and vehicle and equipment outlay. Nonetheless, if the District reaches
its water allocation point prior to the end of the fiscal year (June 30, 2010) and
District customers still have water demands to be met, additional expenses the
District will incur are the substantial added variable water costs, which are
unbudgeted. This includes the wholesale cost of the incremental water purchased
and the additional energy (power) costs used to pump it through the community.
The FY 2009/10 Budget identifies $1,509,900 in energy expenses for pumping
water from groundwater wells and through booster pump stations throughout the
District's service area. Spread over the baseline of 21,970 AF of water purchases,
this amounts to an average power cost for pumping of $68.73 per acre foot. As
previously identified in this report and in the assumptions shown in Exhibit "D", the
District's water suppliers have set the wholesale price for water purchases above
the District's allocation of 21,970 AF, at $1,889 per AF for the first 1,640 AF. The
costs are set at $3,077 for every acre foot purchased thereafter. The combined
cost for water and power therefore is $1,889 + $68.73 = $1,957.73/AF (wholesale
price) for the first overage level above allocation, and $3,077 + $68.73 =
$3,145.73/AF (wholesale price) for all water purchased in the second overage
level. As there are 435.6 HCF in an acre foot, the unit cost of water above
allocation is $1,957.73 divided by 435.6, or $4.49 (Overage Level 1) per unit for
the first 1,640 AF and $3,145.73 divided by 435.6, or $7.22 (Overage Level 2) per
unit thereafter.
As the District has not yet established an equitable and practical method to assess
water use efficiencies for each and every customer, the Overage Level Charges
can be considered a severe pricing disincentive to further support overall water
conservation goals and to encourage water use efficiency for the entire District.
The easiest and least expensive approach to administer these potential cost
increases, if incurred, would be to apply the Overage Level rates to all customers if
the District exceeds its baseline water supply allocation. District staff can track
water production and import water purchase on a daily and monthly basis, and can
determine if water consumption habits are trending toward causing the District to
exceed its baseline water allocation for the year. The District can use proactive
customer outreach to notify its customers of positive and negative water use trends
and how they may affect water rate increases later in the year. If District
customers consciously decide to not adjust their water use habits, Overage Level
1 and Overage Level 2 water rates should be implemented.
Page
18
YLWD Water Rate Report — September 2009
The Board may further decide to levy fines or fees for failure to meet conservation
goals in accordance with the Water Conservation Ordinance and with the statutory
authority granted to the Board. Such fines or fees may be established by separate
resolution of the Board of Directors. For example, the Board may choose to
establish a fine or penalty of up to $10 per unit of water used in excess of an
established allocation. It is clear from the analysis above that the District's
increased variable costs alone may increase to $7.22 per unit in Overage Level 2.
If the District has collected Overage Level 1, Overage Level 2 or alternate fines for
water use above allocations, and following the water year audit, it is determined
that the District will not be required to pay for all or any portion of this water at the
established allocation prices, the Board may refund the surplus increment, transfer
the balance to a rate stabilization fund for future use, commit the balance to active
water conservation programs and improvements, or any combination thereof, as
determined and approved by the Board of Directors.
Conclusions and Recommendations
This Water Rate Report proposes a water rate increase for the monthly service
charge from $8.35/mo. to $10.20 /mo. for all customers and a commodity charge
increase from $1.79 /HCF to $2.52 /HCF. The report also establishes an
alternative tiered rate structure for all single family residential accounts as shown
below.
Tier 1
Consumption
Charge per Unit
1 — 10 units
2.17
Tier II
11 — 30 units
2.50
Tier III
31 — 60 units
2.83
Tier IV
61 — 80 units
3.16
Tier V
81 + units
3.49
Furthermore, the report identifies two additional tiers in the commodity charge for
water use above the District's water allocation baseline. These tiers are
indentified as the Overage Level 1 rate of $4.49 /HCF and the Overage Level 2
rate of $7.22 /HCF. All customer classes would be charged these Overage Level
rates in the event the District's water supply purchases exceed its baseline
allocation for FY 2009/10 and in the event subsequent Overage Level allocation
points are exceeded.
Should the Board of Directors implement rate adjustments set forth in this report,
it is recommended that the effective date be September 14, 2009.
Page
19
YLWD Water Rate Report — September 2009
Questions or comments related to this report may be directed to:
Yorba Linda Water District
1717 E. Miraloma Ave
Placentia, CA 92870
Tel: (714) 701 -3000
Fax: (714) 701 -3028
Email: info @ylwd.com
Prepared by:
J
Kenneth Vecchiarelli, P.E.
General Manager
RCE No. 64299
Exp: 6/30/2011
Page
20
YLWD Water Rate Report — September 2009
Exhibit 'X - Proposition 218 Notice
Yorba Linda
Water District
Notice of Public Hearing to Consider Increasing and Modifying Water Rates
NOTICE IS HEREBY GIVEN that a public hearing to consider modifying and increasing rates for water service will be
held on Thursday, September 10, 2009 at 6:30 P.M. or as soon as possible thereafter in the Yorba Linda Water District
Board Chambers, 1717 East Miraloma Avenue, Placentia, CA 92870. At the public hearing, the Board of Directors will
consider written objections and protests to the proposed changes that have been received prior to the conclusion of the
public hearing. Such protests must be mailed in advance to the attention of the Board Secretary at Yorba Linda Water
District, P.O. Box 309, Yorba Linda, CA 92885 -0309, delivered in advance of the public hearing to the District offices at
the address above and filed with the Board Secretary, or delivered in person and received by the Secretary prior to the
conclusion of the public hearing.
Water Charee Increase for All Customers and a
Tiered Rate Option for Single Family Residential
Customers
Proposed Effective Date — September 14, 2009
Rate adjustments are being proposed to the water rates
due to the increasing costs of operating, maintaining, and
replacing the District's water system, the increasing costs
of purchasing and delivering safe and reliable water
service to the community, in addition to encouraging
water users to conserve valuable water resources.
The District's water suppliers, in addition to raising their
rates significantly, have established a water supply
allocation for FY 2009110, starting July 1, 2009. This
allocation limits the amount of water that can be
purchased at the new wholesale rates, then cuts that
historic average by nearly ten percent. Above these
limits, additional and dramatic water supply cost increases
have been established. Within the allocation limit, the
District will pay $701 per acre foot (af), effective
September 1, 2009. The District may purchase
approximately 1,640 acre feet of additional water at a rate
of $1,889 per acre foot (Overage Level 1). Water above
this amount may be purchased at $3,077 per acre foot
(Overage Level 2). These water costs are truly
unprecedented and require a different approach to setting
water rates. This wholesale water pricing requires retail
agencies to promote water conservation goals to assure
costs passed on to our customers, costs that are largely
beyond the District's control, stay as reasonable as
possible.
This public hearing will consider an increase in the
water consumption charge per unit, from the current
rate of $1.79 to $2.52. One unit of water is equal to 748
gallons. The hearing will also consider the establish-
ment of an alternative tiered water rate structure for
single- family residential customers that have a dedi-
cated water meter serving only their property. These
Page
21
customers represent over 90% of the District's account
base. The proposed tiers are shown in Table "A'.
If the tiered rate alternative is not adopted by the Board,
the flat charge of $2.52 per unit, if approved for all other
customers, would also apply to single family residential
accounts. If approved, the new rates will become
effective on September 14, 2009. The tiered rates and
associated ranges have been established to be as revenue
neutral as practical, using historical average water use
ranges, and applying the District's current water supply
allocation. Residential customers have an opportunity
with the tiered rate structure to lower their water bills
within the first two tiers, when compared to the fixed rate
charge of $2.52 per unit applied to the same amount of
water used. Customers that use water in the higher
ranges, pay a higher rate for the increments within that
range only.
Basic Service Charize Increase
Proposed Effective Date — September 14. 2009
This public hearing will also consider an increase to
the basic service charge from the current rate of $8.35
per month to $10.20 per month. If approved, this new
rate will also take effect September 14, 2009. The basic
service charge provides a fixed revenue stream for the
District, equivalent to approximately 25% of the fixed
Proposed
Residential
Customers
Effective September 14,
II'
Water Consumed
Price Per Unit
Tier I
1 — 10 units
$2.17
Tier II
11 — 30 units
2.50
Tier III
31 — 60 units
2.83
Tier IV
61 — 80 units
3.16
Tier V
81+ units
3.49
Basic Service Charize Increase
Proposed Effective Date — September 14. 2009
This public hearing will also consider an increase to
the basic service charge from the current rate of $8.35
per month to $10.20 per month. If approved, this new
rate will also take effect September 14, 2009. The basic
service charge provides a fixed revenue stream for the
District, equivalent to approximately 25% of the fixed
YLWD Water Rate Report — September 2009
costs of providing water service. Fixed costs are
considered those costs that are not directly related to the
purchase of water and the energy required to pump it
throughout our service area. Examples of fixed costs
include materials, supplies, services, salaries, benefits, and
interest and debt principal payments. These costs are
incurred regardless of the amount of water purchased and
sold.
Example Charges of Proposed Rates
Your water bill is calculated by taking the units of water
used within the billing period (typically thirty days) and
multiplying that number times the appropriate water
charge per unit. The basic service charge is then added to
get the total. The average residential water use is around
30 units per month. An example of a typical 30 unit bill
using the current rates is shown below, with the same bill
calculated using the proposed new fixed and tiered rate
alternatives for single family customers. For all other
customers, the same bill calculated using the proposed
fixed rate would apply.
Current Cost for 30 units of Water (All Customers):
Water Charge
Water Usage 30 (units) x $1.79 = $53.70
Basic Service Charge 8.35
Total Current Charges $62.05
Proposed Cost for 30 units of Water Using Flat Rate
(All Customers) - effective September 14, 2009:
Water Charge
Water Usage 30 (units) x $2.52 = $75.60
Basic Service Charge 10.20
Total Proposed Charges (Fixed Rate) $85.80
Proposed Cost for 30 units of Water Using Alternative
Tiered Rate (Single Family Residential Only) -
effective September 14, 2009:
Water Charge
Tier I Water Usage 10 (units) x $2.17 = $21.70
Tier II Water Usage 20 (units) x $2.50 ° $50.00
Basic Service Charge 10.20
Total Proposed Charges (Tiered Rate) $81.90
Comparative Results: Tiered rate total is $3.90 less than with
fixed rate water charge for the average bill of 30 units.
Proposed Water Rate for Water Sold Above YLWD's
Allocation in FY 2009/10 (Overage Level 1 and 2)
The proposed water rates described above were derived
using the expenses and revenues identified in the
approved Budget for FY 2009/10, along with the target
rates and revenues calculated in the Draft 2009 Water
Rate Report and as advised by the Board of Directors.
The projected water rate revenues fall substantially short
of entirely funding the cost of providing services as
identified in the Adopted Budget. Nonetheless, if the
District reaches its allocation point some time before the
Page
22
end of the fiscal year (June 30, 2010) and our customers
still have water demands to be met; the only additional
expenses the District will need to meet are the new
variable water operating costs, which includes the
wholesale cost of the incremental water purchased and the
additional energy (power) costs used to pump it through
the community. The Draft 2009 Water Rate Report
shows that the average cost of power for pumping in
FY2009 /10 is projected to be $68.73 per acre foot (at).
As previously identified in this notice, the District's water
suppliers have set the purchase price for water above
YLWD's allocation point, at $1,889 per of for the first
1,640 af. The costs are set at $3,077 for every acre foot
purchased thereafter. The combined cost for water and
power therefore is $1,889 + 68.73 = $1,957.73/af for the
first overage level above allocation (wholesale cost), and
$3,077 + 68.73 = $3,145.73/af for all water purchased in
the second overage level (wholesale cost). As there are
435.6 units in an acre foot, the unit cost of water above
allocation is $1,957.73 divided by 435.6, or $4.49
(Overage Level 1) per unit for the first 1,640 of and
$3,145.73 divided by 435.6, or $7.22 (Overage Level 2)
per unit thereafter.
This public hearing will consider an increase in the
water consumption charge of $4.49 per unit and 57.22
per unit, respectively, for Overage Level 1 and
Overage Level 2, water use above allocation levels.
These allocations may be established by separate
resolution of the Board of Directors. Alternatively, the
Board may choose to establish a fine or penalty of up to
$10 per unit of water used in excess of the established
allocation. Such fine or penalty must be adopted by
separate Board Resolution. If the District has collected
Overage Level 1, Overage Level 2 or alternate fines for
water use above allocations, and following the water year
audit, it is determined that the District will not be required
to pay for all or any portion of this water at the above
allocation prices, the Board may refund the surplus
increment, transfer the balance to a rate stabilization fund
for future use, commit the balance to active water
conservation programs and improvements, or any
combination of the above options, as approved by the
Board of Directors at the public hearing.
Documents Available for Review:
The Adopted FY 2009/10 Budget and the Draft 2009
Water Rate Report may be viewed at the District's offices
at the address on the front page of this notice, or by
accessing the District's website at www.ylwd.com.
If you received this notice, but are not the property
owner or the tenant responsible for payment of the
water bill, please forward this notice to the responsible
party.
YLWD Water Rate Report — September 2009
Exhibit "B" - Breakdown of Expenses and Outlay
Long Term Debt ($2.8 M)
Vehicles & Equipment
($0.6 M)
Page
23
YLWD Water Rate Report — September 2009
Exhibit "C" - Historical and Breakdown of Variable Water Costs
Page
24
YLWD Water Rate Report — September 2009
Exhibit "D" - Variable Water Costs Budget Assumptions
(Source: Excerpts from FY 2009/10 Budget)
Variable Water Costs include purchased water from Metropolitan Water
District of Orange County ( MWDOC), a readiness to serve (connection
charge) and capacity charge from MWDOC, a groundwater replenishment
assessment (RA) charge from Orange County Water District (OCWD),
natural gas, propane and electricity to transfer water throughout the
District's distribution system.
• An allocation of 11,727 AF of import water for FY 2009/10 has been set by
MWDOC for YLWD.
• The MWDOC allocation establishes our total water budget at 21,970 AF
for FY 2009/10.
• A total of 11,727 AF will be purchased from MWDOC through the year at a
rate of $604 /AF from July 1, 2009 through August 31, 2009 and at a rate
of $701 /AF from September 1 through June 30, 2010.
• Additional import water purchases above the 11,727 AF allocation, up to
1,173 AF ( +10 %), will be charged a rate of $1,889/AF. Additional import
water beyond the +10% will be charged at $3,077/AF.
• A total of 10,243 AF will be pumped from the groundwater basin and
charged a replenishment assessment from OCWD at a rate of $249/AF to
maximize the District's BPP of 62 %.
• An additional 330 AF may be pumped from the basin with an additional
basin equity assessment (BEA) charge of $501 /AF for a total cost of
$750 /AF. Additional groundwater pumped above these limits will be
surcharged an additional $2,400 for a total cost of $3,150/AF.
• The District will pump approximately 2,200 AF of groundwater from the
Met storage pool within the basin, in accordance with the terms of the
Conjunctive Use Program (CUP) at an average adjusted MWDOC rate of
$584/AF.
• Energy cost increases averaging 14.5% effective January 2009 are
included in the energy component of the variable costs. No additional
energy increases are assumed until late summer 2010.
Page
25
YLWD Water Rate Report - September 2009
Exhibit "E" - Five Year Capital Improvement Program
Previously Approved Projects
FY 2009/10
FY 2010/11 FY 2011/12 FY 2012/13
Total
Highland Reservoir
3,952,000
1,224,000
5,176,000
New Well 20
590,000
1,025,000
1,615,000
Wells 1,5,12 Upgrade
190,000
190,000
OC -51 Upgrade
100,000
Corrosion Monitoring Program
100,000
Fairmont BPS Pump Retrofit
Valley View Pipeline Replacement
400,000
400,000
Zone Reconfig. Pipelines
1,300,000
1,300,000
San Antonio PRS Upgrades
270,000
Plumosa Water Line Relining
270,000
Hidden Hills Reservoir
5,500,000
1,300,000
5,500,000
Fire Flow Impvmts Via Sereno & Ohio
25,000
100,000
125,000
Lakeview Sewer Lift Sta Upgrade
220,000
Mixing /Re -Chlor Facil at 2 Res Sites
220,000
Anaheim Interties
150,000
150,000
Lakeview Fencing & Landscaping
210,000
2,500,000 3,000,000
210,000
GIS Implementation
100,000
100,000
Fairmont Site Improvements
300,000
300,000
Foxtail Pipeline
50,000
195,000
245,000
Elk Mtn. Reservoir Site Impvmts.
300,000
300,000
Palm Ave BPS Replacement
540,000
2,160,000 2,700,000
5,400,000
Zone 5 BPS
270,000
270,000 540,000
1,080,000
FY 2007 -12 Program SUBTOTAL $13,767,000 $5,674,000 $3,240,000
New Projects for CIP
Plumosa Site Redevelop. Study
50,000
Asset Management Plan
120,000
Sewer Master Plan
350,000
CMMS Implementation
200,000
Zone Interconnect Stub -ups (3)
120,000
Corrosion Monitoring Program
20,000
Valley View Pipeline Replacement
120,000
Blair Drive Pipeline Replacement
50,000
Highland Pipeline Replacement
120,000
Plumosa Water Line Relining
110,000
Bastanchury Pipeline Replacement
1,300,000
Vista del Verde Valve Replacement
500,000
500,000
Highland BPS Replacement
1,000,000
6,500,000
Mixing /Re -Chlor Facil at 2 Res Sites
100,000
Non -Pot Water Facil for Irrig Use
900,000 900,000
West Wellfield
500,000
2,500,000 3,000,000
Proposed New Projects SUBTOTAL $4,560,000
COMBINED TOTAL $18,327,000
Page
26
3,000,000
$22,681,000
50,000
120,000
350,000
200,000
120,000
20,000
120,000
50,000
120,000
110,000
1,300,000
1,000,000
7,500,000
100,000
1,800,000
9,000,000
$10,500,000 $3,900,000 $3,000,000 $21,960,000
$16,174,000 $7,140,000 $3,000,000 $44,641,000
RESOLUTION NO. 09-15
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
SETTING WATER RATES EFFECTIVE SEPTEMBER 14, 2009
AND AMENDING RESOLUTION NO. 07-17
WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the
Yorba Linda Water District ( "District ") is required to set water rates at a
level which will pay for the provision of water services; and
WHEREAS, the Board of Directors previously adopted Resolution No. 07 -17 which
established water rates effective January 1, 2008. The Board of Directors
has considered and approved the 2009 Water Rate Report which
supports amendment of portions of Resolution No. 07 -17; and
WHEREAS, pursuant to and in compliance with Proposition 218 (California
Constitution Art. XIII D), the District mailed notice of a water rate increase
to all customers and the Board of Directors has received a proof of
mailing; and
WHEREAS, pursuant to Proposition 218 the Board of Directors has held a hearing and
heard and considered protests; and
NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does
hereby find, determine, and resolve that it is necessary to adopt the following water
rates:
Section 1. Resolution No. 07 -17 shall remain in effect except as herein amended.
Section 2. The Board of Directors considered the Adopted Budget for FY 2009/2010
and the 2009 Water Rate Report; the Board of Directors hereby
determines that the water rate increase described in the Water Rate
Report is necessary and sufficient to cover without exceeding the cost to
provide water service to each customer.
Section 3. The Board of Directors has held a hearing and determined that no majority
protest exists.
Section 4. The water rates set forth below shall take effect on September 14, 2009.
All Potable Water Service
All Water Used At: $2.52/100 Cu. Ft
Basic Service Charge for All Meter Sizes: $10.20 /Month
Resolution No. 09 -15 Setting Water Rates
PASSED AND ADOPTED this 10th day of September, 2009 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
John W. Summerfield, President
Yorba Linda Water District
ATTEST:
Ken Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
McCormick, Kidman & Behrens
Resolution No. 09 -15 Setting Water Rates
RESOLUTION NO. 09-16
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
SETTING WATER RATES FOR SINGLE FAMILY RESIDENTIAL SERVICE
EFFECTIVE SEPTEMBER 14, 2009
AND AMENDING RESOLUTION NO. 07-17
WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the
Yorba Linda Water District ( "District ") is required to set water rates at a
level which will pay for the provision of water services; and
WHEREAS, the Board of Directors previously adopted Resolution No. 07 -17 which
established water rates effective January 1, 2008. The Board of Directors
has considered and approved the 2009 Water Rate Report which
supports amendment of portions of Resolution No. 07 -17; and
WHEREAS, pursuant to and in compliance with Proposition 218 (California
Constitution Art. XIII D), the District mailed notice of a water rate increase
to all customers and the Board of Directors has received a proof of
mailing; and
WHEREAS, pursuant to Proposition 218 the Board of Directors has held a hearing and
heard and considered protests; and
NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does
hereby find, determine, and resolve that it is necessary to adopt the following water
rates:
Section 1: Resolution No. 07 -17 shall remain in effect except as herein amended.
Section 2. The Board of Directors considered the Adopted Budget for FY 2009/2010
and the 2009 Water Rate Report; the Board of Directors hereby
determines that the water rate increase described in the Water Rate
Report is necessary and sufficient to cover without exceeding the cost to
provide water service to each customer.
Section 3. The Board of Directors has held a hearing and determined that no majority
protest exists.
Resolution No. 09 -16 Setting Water Rates
Section 4. The water rates set forth below is for single family residential service and
shall take effect on September 14, 2009:
All Potable Water Service:
1 Unit = 100 Cu. Ft
Basic Service Charge for all Meter Sizes: $10.20 /Month
PASSED AND ADOPTED this 10th day of September, 2009 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
John W. Summerfield, President
Yorba Linda Water District
ATTEST:
Ken Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
McCormick, Kidman & Behrens
Resolution No. 09 -16 Setting Water Rates 2
Consumption
Charge Per Unit
Tier 1
1 — 10 Units
$2.17
Tier II
11 — 30 Units
$2.50
Tier III
31 — 60 Units
$2.83
Tier IV
61 — 80 Units
$3.16
Tier V
81 + Units
$3.49
1 Unit = 100 Cu. Ft
Basic Service Charge for all Meter Sizes: $10.20 /Month
PASSED AND ADOPTED this 10th day of September, 2009 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
John W. Summerfield, President
Yorba Linda Water District
ATTEST:
Ken Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
McCormick, Kidman & Behrens
Resolution No. 09 -16 Setting Water Rates 2
RESOLUTION NO. 09-17
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT ( "DISTRICT ")
SETTING WATER RATES IMMEDIATELY EFFECTIVE UPON THE DISTRICT
EXCEEDING ESTABLISHED WATER ALLOCATION LIMITS
AND TEMPORARILY AMENDING RESOLUTIONS NO. 09-15 AND 09 -16
WHEREAS, pursuant to Water Code Section 31007, the Board of Directors of the
Yorba Linda Water District is required to set water rates at a level which
will pay for the provision of water services; and
WHEREAS, the Metropolitan Water District of Southern California, the Municipal Water
District of Orange County, and the Orange County Water District have all
adopted water allocation plans with tiered rate structures penalizing
overuse of water which could potentially result in the District's cost of
source water increasing during the coming fiscal year of 2009/2010; and
WHEREAS, the Board of Directors adopted Resolutions No. 09 -15 and 09 -16 which
establishes water rates as of September 14, 2009 and the Board of
Directors has received and considered a water rate study which shows
that portions of Resolutions No. 09 -15 and 09 -16 may need to be
amended in order to keep up with the potential increased cost of source
water; and
WHEREAS, pursuant to and in compliance with Proposition 218 (California
Constitution Art. XIII D), the District mailed notice of a water rate increase
to all customers and the Board of Directors has received a proof of
mailing; and
WHEREAS, pursuant to Proposition 218 the Board of Directors has held a hearing and
heard and considered protests; and
NOW THEREFORE, the Board of Directors of the Yorba Linda Water District does
hereby find, determine, and resolve that it is necessary to adopt the following water
rates:
Section 1. The water rates adopted herein temporarily amend and replace the rates
established in Resolutions No. 09 -15 and 09 -16 through the end of Fiscal
Year 2009/2010, which is June 30, 2010; such amended rates shall take
immediate effect for all water used within Water Overage Levels 1 and 2
as defined in the 2009 Water Rate Report and as established by the
Municipal Water District of Orange County and as explained in the Notice
of Public Hearing attached hereto and incorporated herein.
Section 2. This resolution is hereby rescinded and the water rates adopted by the
Board of Directors in Resolutions No. 09 -15 and 09 -16 are hereby
reestablished effective July 1, 2010.
Resolution No. 09 -17 Setting Water Rates
Section 3. The Board of Directors considered the Adopted Budget for FY 2009/2010
and the 2009 Water Rate Report; the Board of Directors hereby
determines that the water rate increase described in the Water Rate
Report is necessary and sufficient to cover the cost to provide water
service to each customer.
Section 4. The Board of Directors has held a hearing and determined that no majority
protest exists.
Section 5. The water rates set forth below shall take effect immediately upon the
District exceeding established water allocation limits:
5.a. For all water used within Overage Level 1 $4.49 /HCF
Basic Service Charge for All Meter Sizes: $10.20 /Month
5.b. For all water used in Overage Level 2 $7.22 /HCF
Basic Service Charge for All Meter Sizes: $10.20 /Month
PASSED AND ADOPTED this 10th day of September, 2009 by the following called vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
John W. Summerfield, President
Yorba Linda Water District
ATTEST:
Ken Vecchiarelli, Secretary
Yorba Linda Water District
Reviewed as to form by General Counsel:
Arthur G. Kidman, Esq.
McCormick, Kidman & Behrens
Resolution No. 09 -17 Setting Water Rates 2
ITEM NO. 7.1
AGENDA REPORT
Meeting Date: September 10, 2009
Subject: Minutes of the Regular Board of Directors Meeting Held August 27, 2009
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
vescription:
082709 BOD - Minutes.doc BOD Mtg Minutes 0&2i�C
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS REGULAR MEETING
August 27, 2009
1. CALL TO ORDER
The August 27, 2009 regular meeting of the Yorba Linda Water District Board of
Directors was called to order by President Summerfield at 8:31 a.m. The
meeting was held at the District's Administrative Office at 1717 E Miraloma Ave,
Placentia CA 92870.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT
John W. Summerfield, President
Paul R. Armstrong
Michael J. Beverage
Ric Collett
STAFF PRESENT
Ken Vecchiarelli, General Manager
Pat Grady, Asst General Manager
Art Kidman, General Counsel
Steve Conklin, Engineering Manager
Lee Cory, Operations Manager
Gina Knight, HR Manager
Cindy Navaroli, Interim Finance Director
Anthony Manzano, Sr Project Manager
Annie Alexander, Executive Secretary
DIRECTORS ABSENT
William R. Mills, Vice President
4. ADDITIONS /DELETIONS TO THE AGENDA
President Summerfield announced that Item Nos. 8.5. and 9.1. needed to be
deleted from the agenda.
On a motion by Director Beverage, seconded by Director Collett, the Board voted
4 -0 to delete Item Nos. 8.5. and 9.1. from the agenda.
5. PUBLIC COMMENTS
Brett Barbre, MWDOC Director, spoke regarding the status of the state's water
supply and the Governance Study being conducted by the Orange County Local
Agency Formation Commission. Mr. Barbre requested that the Board consider
adopting a resolution of support for the current structure of wholesale water
distribution within MWDOC's service area. This matter will be discussed at the
next Executive - Administrative - Organizational Committee meeting.
6. SPECIAL RECOGNITION
6.1. Mr. Vecchiarelli introduced Cindy Navaroli, newly hired Interim Finance
Director.
6.2. Mr. Conklin introduced Anthony Manzano, newly hired Senior Project
Manager.
7. CLOSED SESSION
Mr. Vecchiarelli requested to delete Item No. 7.1. from the agenda as Mr. Kreisler
was not in attendance and there was nothing new to report.
On a motion by Director Beverage, seconded by Director Armstrong, the Board
voted 4 -0 to delete Item No. 7.1. from the agenda.
7.1. Conference with Labor Negotiators
Pursuant to Section 54956.7 of the California Government Code
Agency Designated Representatives:
Ken Vecchiarelli
Pat Grady
Gina Knight
Richard Kreisler
Employee Organization:
Yorba Linda Water District Employees Association
This item was deleted from the agenda.
8. CONSENT CALENDAR
On a motion by Director Beverage, seconded by Director Collett, the Board voted
4 -0 to approve the Consent Calendar. Director Collett abstained from voting on
Check No. 52261 of Item No. 8.2. as he had a business interest with the
company.
8.1. Minutes of the Regular Board of Directors Meeting Held August 13, 2009
Recommendation. That the Board of Directors approve the
minutes as presented.
8.2. Payment of Bills, Refunds, and Wire Transfers
Recommendation. That the Board of Directors ratify and authorize
disbursements in the amount of $1,091,907.02.
8.3. Progress Payment No. 2 for the Zone Reconfiguration Project
Recommendation. That the Board of Directors approve Progress
Payment No. 2 in the net amount of $215,217.79 to Ken
Thompson, Inc. for construction of the Zone Reconfiguration
Project, Job No. 200710.
K
8.4. Progress Payment No. 3 for Construction of the Hidden Hills Reservoir
Project
Recommendation. That the Board of Directors approve Progress
Payment No. 3 in the net amount of $53,937.00 to Pacific
Hydrotech Corporation for construction of the Hidden Hills
Reservoir Project, Job No. 20028.
8.5. Proposed Payment Plan for Grandview Sewer Connection
This item was deleted from the agenda and therefore not included in the
Consent Calendar.
9. ACTION CALENDAR
9.1. 2009 Water Rate Report
This item was deleted from the agenda.
9.2. Draft Responses to 2009 Grand Jury Reports
Mr. Grady provided a PowerPoint presentation regarding the Orange
County Grand Jury's findings and recommendations. Mr. Grady reviewed
staff's recommended responses to each of the findings as well as
recommendations made by the Citizens Advisory Committee (CAC).
Mark Shock, resident, addressed the Board and stated that he had
attended meetings of the CAC and commended the District for its
formation. Mr. Shock also commented on the importance of
communication with residents regarding District projects and issues.
Mr. Barbre addressed the Board and urged the Directors not to implement
term limits as recommended by the Grand Jury because of the education
process required and loss of experience and historical knowledge.
On a motion by Director Beverage, seconded by Director Collett, the
Board voted 4 -0 to approve the Grand Jury responses as recommended
by staff and authorize the President to execute the responses on behalf of
the District.
9.3. Letter of Support for AB 1506
Mr. Vecchiarelli explained that the purpose of the letter was to support AB
1506 which would require the state to accept its own IOU's as credit
towards obligations owed to the state.
On a motion by Director Beverage, seconded by Director Armstrong, the
Board voted 4 -0 to authorize the President to execute correspondence to
Assemblyman Joel Anderson in support of AB 1506.
K3
9.4. Nominations for Association of California Water Agencies (ACWA)
President and Vice President
Mr. Vecchiarelli explained that the Board had the option of nominating one
of its own Directors for ACWA President or Vice President or supporting
the nomination of another candidate.
Mr. Barbre addressed the Board and stated that MWDOC had invited the
candidates for ACWA Vice President to speak at a recent Board meeting.
Following the candidates remarks, the MWDOC Board of Directors voted
7 -0 to support the nomination of Randy Record.
On a motion by Director Armstrong, seconded by Director Beverage, the
Board voted 4 -0 to take no action on this item.
10. REPORTS, INFORMATION ITEMS AND COMMENTS
10.1. President's Report
None.
10.2. Directors' Reports
Director Beverage commented on National Geographic's publication titled
Water for Tomorrow.
Director Collett commented on a recent trip he had taken to Cambria and
the methods being used to control development in the area.
10.3. General Manager's Report
Mr. Vecchiarelli reported that staff expected the District to end the month
above target for 10% water conservation. Only one water conservation
ordinance violation was issued during the August and is under appeal.
Staff has received approximately 50 written protests regarding the water
rate increase which will be provided to the Board for consideration. Mr.
Vecchiarelli requested that the Board schedule a special meeting to
discuss the 2009 Water Rate Report the first week of September.
Following discussion, this meeting was set for September 2, 2009 at 8:00
a. m.
10.4. General Counsel's Report
Mr. Kidman commented on a bulletin issued by Best Best & Krieger
regarding a court of appeal ruling on monthly minimum charges for water
and sewer service. Copies of the bulletin were provided to the Board and
public in attendance.
10.5. Future Agenda Items and Staff Tasks
None. Mr. Vecchiarelli announced that staff would be arranging for a tour
of District facilities for the Board of Directors and members of the Citizens
Advisory Committee.
CI
11. COMMITTEE REPORTS
11.1. Executive - Administrative - Organizational Committee
(Summerfield /Mills) Alternate. Collett
Minutes of the meeting held August 17 were provided in the agenda
packet. Directors Summerfield and Mills attended. Items discussed
during the meeting were as follows: proposed payment plan for
Grandview sewer connection; draft responses to 2009 Grand Jury
Reports; request for letter of support for AB 1506; annexation to OCWD;
City of Yorba Linda and City of Placentia sewers; Board Member
attendance at MWDOC and OCWD Board meetings; reports on legislative
and grant activities; report on legislative bills; General Counsel's monthly
summary billing report; and Directors' and General Manager's fees and
expenses.
Meeting scheduled for September 15, 4:00 p.m. has been rescheduled to
September 16, 4:00 p.m.
11.2. Finance - Accounting Committee
(Beverage / Summerfield) Alternate. Mills
Meeting scheduled for September 8, 4:00 p.m. has been rescheduled to
September 9, 4:00 p.m.
11.3. Personnel -Risk Management Committee
(Armstrong /Collett) Alternate. Summerfield
Meeting scheduled for September 14, 4:00 p.m. Director Summerfield will
be attending this meeting in place of Director Collett.
11.4. Planning- Engineering- Operations Committee
(Mills /Armstrong) Alternate. Beverage
Meeting scheduled for September 3, 4:00 p.m.
11.5. Public Information - Technology Committee
(Collett /Beverage) Alternate. Armstrong
Meeting scheduled for September 1, 4:00 p.m.
11.6. MWDOC /OCWD Ad Hoc Committee
(Mills /Collett) Alternate. Summerfield
Meeting scheduled for September 22, 4:00 p.m.
11.7. City of Placentia Ad Hoc Committee
(Beverage /Vecchiarelli)
Meeting scheduled for September 17, 4:00 p.m.
61
11.8. Citizens Advisory Committee
Minutes of the meeting held August 24 were provided at the meeting.
Items discussed during the meeting were as follows: CAC
recommendation on water rate increase at public hearing; Orange County
Grand Jury Reports; and Water Conservation Ordinance progress report.
Meeting scheduled for September 28, 8:30 a.m.
11.9. Revenues and Rates Ad Hoc Committee
(Collett /Mills)
Meeting to be scheduled.
12. INTERGOVERNMENTAL MEETINGS
12.1. Yorba Linda City Council, August 18 (Armstrong)
Director Armstrong attended.
Director Beverage commented on a recent newspaper article regarding
the sewers in the City of Yorba Linda being funded in part from the City's
General Fund.
Mr. Vecchiarelli reported that staff would be setting up a meeting with the
Mayor and City Manager of Yorba Linda to discuss City and Water District
related matters.
12.2. MWDOC Board, August 19 (Staff)
Staff did not attend.
12.3. OCWD Board, August 19 (Staff)
Staff did not attend.
12.4. Yorba Linda Planning Commission, August 26 ( Summerfield)
Director Summerfield attended and commented on a public hearing held
at the meeting for construction of a new medical office building for the St.
Joseph Health System.
13. BOARD OF DIRECTORS ACTIVITY CALENDAR
13.1. Meetings from August 28, 2009 thru September 30, 2009
The Board reviewed the listed meetings with no additional changes.
14. CLOSED SESSION
The meeting was adjourned to Closed Session at 9:48 a.m. All Directors in
attendance were present. Also present were Messrs. Vecchiarelli, Grady and
Kidman and Mses. Knight and Park.
C.1
15.
14.1. Conference with Legal Counsel — Pending Litigation
Pursuant to Subdivision (a) of Section 54956.9 of the California
Government Code
Name of Case:
Marc vs. YLWD (Orange County Superior Court — Case No. 00122904)
Name of Case:
Itani, et al vs. YLWD (Orange County Superior Court — Case No.
00124906)
Name of Case:
Johnson, et al vs. YLWD, et al (Orange County Superior Court — Case No.
00125994)
The Board reconvened in Open Session at 10:14 a.m. President Summerfield
announced that no action was taken during Closed Session that was required to
be reported under the Brown Act.
ADJOURNMENT
15.1. The meeting was adjourned at 10:15 a.m. The next regular meeting of the
Board of Directors will be held September 10, 2009 at 6:30 p.m.
rA
ITEM NO. 7.2
AGENDA REPORT
Meeting Date: September 10, 2009
Subject: Minutes of the Special Board of Directors Meeting Held September 2, 2009
STAFF RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
vescription:
090209 BOD - Minutes.doc BOD Mtg Minutes 09�02,G
MINUTES OF THE
YORBA LINDA WATER DISTRICT
BOARD OF DIRECTORS SPECIAL MEETING
September 2, 2009
1. CALL TO ORDER
The September 2, 2009 special meeting of the Yorba Linda Water District Board
of Directors was called to order by President Summerfield at 8:01 a.m. The
meeting was held at the District's Administrative Office at 1717 E Miraloma Ave,
Placentia CA 92870.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
DIRECTORS PRESENT
4.
5.
A
John W. Summerfield, President
William R. Mills, Vice President
Paul R. Armstrong
Michael J. Beverage
Ric Collett
STAFF PRESENT
Ken Vecchiarelli, General Manager
Pat Grady, Asst General Manager
Art Kidman, General Counsel
Annie Alexander, Executive Secretary
ADDITIONS /DELETIONS TO THE AGENDA
None.
PUBLIC COMMENTS
None.
ACTION CALENDAR
6.1. 2009 Water Rate Report
Mr. Vecchiarelli introduced the item and explained that the draft 2009
Water Rate Report was being provided to the Board for final approval. Mr.
Vecchiarelli then responded to questions from the Board regarding the
inclusion of a rate comparison chart in the appendix of the report.
Following discussion, it was the consensus of the Board that a rate
comparison chart not be included in the report as more updated rate
information would be available in March 2010 following MWDOC's annual
rate study. Mr. Vecchiarelli then responded to questions from the Board
regarding the District's debt service ratio and the current budget.
Director Collett made a motion, seconded by Director Mills to receive and
file the 2009 Water Rate Report. No vote was taken at this time.
Further discussion of rate comparisons followed. Director Beverage
requested that staff compile a report identifying what portions of the rate
increase are attributed to SCE, Gas Co., etc.
The motion passed with the Board voting 5 -0.
Mr. Vecchiarelli reported that staff was tracking the number of written
protests received in regards to the proposed rate increase. Approximately
30 have been received, including two petitions. A good majority are from
residents with large lots who are against the tiered rate structure. A
summary of all the protests received will be provided to the Board prior to
the public hearing on September 10tH
6.2. Resolution of Support for the Municipal Water District of Orange County
( MWDOC)
Mr. Vecchiarelli explained that this item was placed on the agenda as staff
believed at the time that it would need to be considered by the Board
before September 9t". LAFCO has scheduled a public hearing that
morning to consider the final draft of its MWDOC Governance Alternatives
Study. Since that time, staff has discovered that the Board could consider
adoption of this resolution at a later time. Mr. Vecchiarelli then responded
to questions from the Board regarding the need for review of the study
prior to consideration of the resolution. Further discussion followed.
On a motion by Director Beverage, seconded by Director Armstrong, the
Board voted 5 -0 on a Roll Call to adopt Resolution No. 09 -14 In Support of
the Municipal Water District of Orange County and In Opposition of Efforts
to Divide Orange County into North and South Wholesale Water Agencies.
7. ADJOURNMENT
7.1. The meeting was adjourned at 8:53 a.m. The next regular meeting of the
Board of Directors will be held September 10, 2009 at 6:30 p.m.
K
AGENDA REPORT
Meeting Date:
September 10, 2009
Budgeted:
Total Budget:
To:
Board of Directors
Cost Estimate:
Funding Source:
From:
Ken Vecchiarelli, General Manager
Account No:
Presented By:
Cindy Navaroli, Interim Finance
Dept:
Director
Reviewed by Legal:
Prepared By:
Maria Trujillo, Accounting Assistant
CEQA Compliance:
Subject: Payments of Bills, Refunds, and Wire Transfers
ITEM NO. 7.3
Yes
N/A
$888,271.93
All Funds
N/A
Finance
N/A
N/A
SUMMARY:
Section 31302 of the California Water Code says the District shall pay demands made against it when they
have been approved by the Board of Directors. Pursuant to law, staff is hereby submitting the list of
disbursements for Board of Directors' approval.
STAFF RECOMMENDATION:
That the Board of Directors ratify and authorize disbursements in the amount of $888,271.93.
DISCUSSION:
The major items and wire transfers on this disbursement list are as follows: A check of $53,156.25 to Paulus
Engineering for Job 200901 progress payment; a check of $257,542.74 to Schuler Engineering for Job
200309 progress payment; and, a check of $80,537.64 to Southern California Edison for July 2009 billing on
various sites. The balance of $256,273.63 is routine invoices.
ADP is now issuing our payroll checks, with the exception of the third party checks.
The Accounts Payable check register total is $647,510.26; Payroll No. 17 total is $240,761.67; and, the
disbursements of this agenda report are $888,271.93. A summary of the checks is attached.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors approves bills, refunds and wire transfers semi - monthly.
ATTACHMENTS:
Description: Type:
CkReg910 BB.xls Check List 9/10/09 Backup Material
09 -CS 910.doc Cap Sheet 9/10/09 Backup Material
Yorba Linda Water District
Check Register
For Checks Dated:
8/28/2009 to 9/10/2009
Check No.
Date
Vendor Name
Amount
52384
09/10/2009
4 Imprint Inc
14,589.66
52294
08/28/2009
Abigail Abbott Staffing Svc
6,913.65
52299
09/10/2009
Abigail Abbott Staffing Svc
5,423.65
52300
09/10/2009
ACWA -Assn Of Ca Water
869.26
52301
09/10/2009
Advanced Infrastructure
5,437.50
52309
09/10/2009
Alsco
274.04
52302
09/10/2009
Anaheim Wheel & Tire
105.00
52303
09/10/2009
Aqua- Metric Sales Co.
10,605.11
52304
09/10/2009
ARB / PERP
150.00
52305
09/10/2009
Artistic Maintenance, Inc
3,612.35
52307
09/10/2009
AT & T
45.09
52306
09/10/2009
AT & T - Calnet2
4,154.19
52308
09/10/2009
Atwood Sales
320.57
52321
09/10/2009
C. Wells Pipeline
1,109.95
52310
09/10/2009
CDW Government, Inc
39.52
52311
09/10/2009
Certified Laboratories
395.46
52312
09/10/2009
Certified Laboratories
435.97
52313
09/10/2009
Cindy Navaroli, CPA
8,868.75
52314
09/10/2009
Citizen's Business Bank
28,615.86
52315
09/10/2009
Cla -Val Co.
649.53
52316
09/10/2009
Coastal Ignition & Controls
1,716.69
52317
09/10/2009
Coastline Equipment
314.43
52318
09/10/2009
Cogsdale Services Corporation
2,520.83
52319
09/10/2009
Costco Membership
50.00
52320
09/10/2009
Culligan
1,805.90
52324
09/10/2009
D.R. Criske Trucking Inc
295.26
52322
09/10/2009
Dangelo Co.
600.00
52323
09/10/2009
Dapper Tire Co. Inc.
955.35
52296
09/10/2009
Demolition Services Inc
996.94
52325
09/10/2009
E. G. Brennan & Co., Inc
353.44
52326
09/10/2009
Eisel Enterprises, Inc.
1,425.66
52327
09/10/2009
Federal Express
80.91
52328
09/10/2009
Filter Recycling Services, Inc
97.75
52329
09/10/2009
Fry's Electronics
230.81
52330
09/10/2009
Graybar Electric Co
1,084.19
52331
09/10/2009
Hach Company
2,334.36
52297
09/10/2009
Haitbrink Asphalt Paving Inc
950.00
52332
09/10/2009
Home Depot Credit Services
168.83
52333
09/10/2009
Infosend Inc.
13,756.33
52334
09/10/2009
Interiors By Jani -Tress
8,856.00
52339
09/10/2009
J & S Construction
4,975.00
52335
09/10/2009
Jackson's Auto Supply - Napa
835.28
52336
09/10/2009
Jesus Sosa
100.00
52337
09/10/2009
Jon'S Flags & Poles, Inc.
880.33
52338
09/10/2009
Joseph G. Pollard Co., Inc
23,940.00
52340
09/10/2009
Katrina Brown
1,614.96
52341
09/10/2009
Leighton Consulting, Inc.
1,406.50
52342
09/10/2009
Liebert Cassidy Whitmore
8,573.00
52343
09/10/2009
LPR
250.11
52344
09/10/2009
Matt Chlor Inc.
1,150.00
52345
09/10/2009
Mc Master -Carr Supply Co.
165.06
52346
09/10/2009
Miguel Serna
1,132.90
52347
09/10/2009
Minuteman Press
70299
52348
09/10/2009
Morton Salt
2,844.14
52349
09/10/2009
Muzak Oa
65.25
52350
09/10/2009
MWH Americas, Inc.
4,472.11
52351
09/10/2009
National Notary Assn.
33.00
52352
09/10/2009
Nickey Petroleum Co
4,555.06
52353
09/10/2009
O.C. Driveline
351.11
52354
09/10/2009
Office Solutions
420.82
52355
09/10/2009
Orange County Water Assn
300.00
52397
09/10/2009
P.T.I. Sand & Gravel, Inc.
1,432.08
52356
09/10/2009
Parts Source Anaheim
173.88
52357
09/10/2009
Paulus Engineering Inc.
53,156.25
52358
09/10/2009
Peck Road Truck Center
1,962.78
52391
09/10/2009
Peninsula Pump Corp
2,655.77
52392
09/10/2009
Pete's Parts & Accessories
317.11
52393
09/10/2009
Plumbing And Industrial Supply
138.79
52394
09/10/2009
Praxair Distribution
215.64
52395
09/10/2009
Project Partners, Inc.
4,090.50
52396
09/10/2009
Psomas & Associates
5,658.08
52398
09/10/2009
Quinn Power Systems Associates
1,470.78
52399
09/10/2009
R J Services, Inc
787.50
52400
09/10/2009
Ryan Press
81.56
52413
09/10/2009
SARBS -CWEA
100.00
52401
09/10/2009
Schuler Engineering Corp.
257,542.74
52402
09/10/2009
Scott W. Moulton
6,736.25
52403
09/10/2009
Selman Chevrolet Company
64.99
52404
09/10/2009
Shred -It Los Angeles
72.15
52405
09/10/2009
South Coast AQMD
402.21
52406
09/10/2009
Southern Calif Edison Co.
80,537.64
52407
09/10/2009
Southern Calif Gas Co.
17,830.08
52408
09/10/2009
Stacy Bavol /Petty Cash
16.90
52409
09/10/2009
Staples Business Advantage
508.48
52410
09/10/2009
Sunstate Equipment Co
62.21
52411
09/10/2009
Support Product Services
10,867.39
52412
09/10/2009
Tech Pro Sales & Service, Inc
722.10
52388
09/10/2009
Time Warner Cable
298.03
52414
09/10/2009
Transcat
761.37
52298
09/10/2009
Tristan Engineering Contractors Inc
907.04
52415
09/10/2009
United Industries
114.75
52389
09/10/2009
USA Blue Book
574.37
52385
09/10/2009
Vision Service Plan
1,607.89
52386
09/10/2009
Wells Supply Co
4,745.64
52416
09/10/2009
William Mills
20.90
52295
09/10/2009
Yorba Linda Housing Partners
900.00
Total
$647,510.26
September 10, 2009
CHECK NUMBERS:
Manual Check 52294 $ 6,913.65
Computer Checks 52295 — 52358
52384 —52416 $ 640,596.61
TOTAL OF CHECKS $ 647,510.26
Void Checks 52359 TO 52383
PAYROLL NO. 17 (including ADP checks):
DISTRICT CHECK NUMBERS:
Manual Checks 4350 TO 4354 $ 240,761.67
--------------------------------------------------------------------------------------------------------------------
TOTAL: $ 888,271.93
------------------------------------------------------------------
------------------------------------------------------------------
APPROVED BY THE BOARD OF DIRECTORS MINUTE ORDER AT BOARD
MEETING OF SEPTEMBER 10, 2009
------------------------------------------------------------------
------------------------------------------------------------------
TOTAL DISBURSEMENTS ARE DISTRIBUTED TO THE FUND ACCOUNTS
AS FOLLOWS:
WATER
$
804,178.81
SEWER
$
21,195.72
I D# 1
$
61, 948.04
I D# 2
$
949.36
TOTAL: $ 888,271.93
ITEM NO. 7.4
AGENDA REPORT
Meeting Date: September 10, 2009 Budgeted: Yes
Total Budget: $250,000
To: Board of Directors Cost Estimate: $250,000
Funding Source: Sewer Operating
Fund
From: Ken Vecchiarelli, General Account No: 201 -2700
Manager
Job No: J- 200905
Presented By: Steve Conklin, Engineering Dept: Engineering
Manager
Reviewed by Legal: N/A
Prepared By: Hank Samaripa, Project CEQA Compliance: Exempt
Engineer
Subject: Progress Payment No. 1 for Lakeview Sewer Lift Station
SUMMARY:
The Notice to Proceed for the Lakeview Sewer Lift Station Rehabilitation was issued August 11,
2009. Work includes replacement of the wet well pumps, new 3 phase electric service, new control
panel, and miscellaneous appurtenances. The successful low bid contractor was Schuler
Engineering Corporation.
STAFF RECOMMENDATION:
That the Board of Directors approve Progress Payment No. 1 in the amount of $2,925.00 to Schuler
Engineering Corp.
DISCUSSION:
In accordance with the contract documents, Schuler Engineering submitted a request for Progress
Payment No. 1 in the amount of $2,925.00 for completed work through August 31, 2009. During this
period, the contractor began mobilization and paid for bonds for the project. The status of the
construction contract with Schuler Engineering Corp. is as follows:
• The current contract is $132,087.00 and 120 calendar days starting August 11, 2009.
• If approved, Progress Payment No. 1 is $3,250.00 (2.4% of the total contract amount) less
10% retention of $325.00 for a net payment of $2,925.00.
• If approved, total Progress Payment No. 1 to date including retention is $3,250.00 (2.4% of
the total contract amount).
• As of August 31, 2009, 20 calendar days were used (16.6% of the contract calendar days).
Staff reviewed the Progress Payment request and recommend payment. A copy of the Progress
Payment Request No. 1 is attached for your information.
PRIOR RELEVANT BOARD ACTION(S):
The Board previously approved the Lakeview Sewer Lift Station Rehabilitation Project in the
FY2007 -2012 Capital Improvement Program in May 2005. On May 14, 2009, the Board of Directors
authorized the President and Secretary to execute an Amendment to the Professional Service
Agreement with Tetra Tech Consultants in the amount of $19,960, which allowed the completion of
the Lakeview Sewer Lift Station plans and specification and provided for support engineering
services during construction. Construction bids were received and a construction contract in the
amount of $137,087.00 was awarded to the low bidder, Schuler Engineering on July 9, 2009.
ATTACHMENTS:
Description: Type:
SchulerPP 1 082709.pdf Progress Pay No. 1 Lakeview Lift Station Backup Material
YORBA LINDA WATER DISTRICT
PROGRESS PAY REPORT
PROJECT Lakeview Sewer Lift Station PROGRESS PAY REQUEST NO- 1
LOCATION Yorba Linda PROJECT NO. J-0905 PAGE OF PAGES
CONTRACTOR Schuler Engineering DATE
ORIGINAL CONTRACT AMOUNT: $ 132,087
AUTHORIZED CHANGE ORDERS: A -
REVISED CONTRACT AMOUNT: $ 132,087
PAY ESTIMATE FOR PERIOD August 1, 2009 TO
PREVOUS THIS MONTH
VALUE OF WORK COMPLETED
CHANGE ORDER WORK COMPLETED
TOTAL VALUE OF WORK COMPLETED
LESS RETENTION 10%
LESS OTHER DEDUCTIONS
AMOUNT DUE THIS ESTIMATE
LESS AMOUNT PREVIOUSLY PAI D
BALANCE DUE THIS ESTIMATE
TICE TO PROCEED
MPLETION TIME
ED TIME EXTENSIONS
) TAL CONTRACT TIME
ME EXPENDED TO DATE
ME REMAINING
CALENDAR DAYS
CALENDAR DAYS
CALENDAR DAYS
Zra —CALENDAR DAYS
I 'LA- CALENDAR DAYS
- 1 $
kugust 31, 2009
TO DATE
00 � $ 3,250,00
$ 3,250.00 $ 3,250,00
$ 325.00
$ 2,925-00
$ 2,925-00
REQUESTED BY: DATE:
has Wick - Sdhuler Engineering
Owners >1
APPROVED BY: -Hank Sam**-YLWD DATE:
�ppresenfa-tive --
APPROVED BY- DATE:
OWNER 4 Stave Conklin -YLWD
Pay Estimate # 1- 8- 31- 09.xls
PROJECT NAME: LAKEVIEW LIFT STATION CONTRACTOR: SCHULER ENGINEERING CORP. PROGRESS EST. # 01
PROJECT #: J- 2009(15- SEC -# S -0912 ADDRESS: 564 West Bateman Circle, Corona, Calif. 928 PERIOD: Start to 8••31 -09
PHONE: 909 -738 -9215
I
ITEM #. DESCRIPTION BID UNIT QUANTITY QUANTITY QUANTITY UNIT TOTAL. VALUE TOTAL VALUE
QUANTITY THIS PERIOD PREY PERIOD TODATE ' PRICE TODATE THIS PERIOD
1 Mobil ization /bonds/perrnits
Mohilization/bondslpermits /demob 1 LS 1 50 50 65' 3250 3250
2 Furnish & install 2-chopper rartra p s
Furnish & install 2- chopper pumps 1 LS F 0 800 0' 0
31 Paint exisitng & new pipe /valves
Paint existing and new pipe /valves 1 LS 0 50 0 O
-- - -- -- -
4 Furnish elec. pump control panel
COMMENTS
Page 1
Meeting Date:
To:
From:
Presented By:
Prepared By:
Subject
SUMMARY:
AGENDA REPORT
September 10, 2009
Board of Directors
Ken Vecchiarelli, General
Manager
Steve Conklin, Engineering
Manager
Budgeted:
Total Budget:
Cost Estimate:
Funding Source:
Account No:
Job No:
Dept:
Reviewed by Legal:
Joe Polimino, Project Engineer CEQA Compliance:
ITEM NO. 7.5
Yes
$280,000
$280,000
ID No. 1 GO Bonds
101 -2700
200901
Engineering
No
Exempt
Progress Payment No. 1 for the San Antonio Pressure Reducing Station
Upgrade Project
On April 27, 2009, bids were received from 11 contractors for the construction of the San Antonio
Pressure Reducing Station Upgrade Project. It will consist of removing the upper half of the
underground vault, installation of new pressure reducing valves and piping, and rebuilding the vault
with improved access, lighting and ventilation. The low bid was $236,250 by Paulus Engineering,
Inc. The Engineer's Estimate was $280,000.
STAFF RECOMMENDATION:
That the Board of Directors approve Progress Payment No. 1 in the net amount of $53,156.25.00 to
Paulus Engineering, Inc. for construction of the San Antonio Pressure Reducing Station Upgrades
Project, Job No. 200901.
DISCUSSION:
In accordance with the contract documents, Paulus Engineering, Inc. submitted a request for
Progress Payment No. 1, in the amount of $59,062.50 for completed work through August 31, 2009.
During this period, the contractor assigned various personnel to the project and began preparation
and processing of equipment submittals for review to Psomas, the design engineer for the project.
The status of the construction contract with Paulus Engineering, Inc. is as follows:
• The current contract is $236,250.00 and 100 calendar days starting June 22, 2009.
• If approved, Progress Payment No. 1 is $59,062.50 (25.0% of the total contract amount), less
10% retention of $5,906.25 for a net payment of $53,156.25.
• Total payments to date including retention are $59,062.50 (25.0% of the total contract
amount).
• As of August 31, 2009, 71 calendar days were used (71.0% of the contract time).
District staff reviewed the contractor's progress payment and recommend approval. A copy of
Progress Payment No. 1 is attached for your reference.
PRIOR RELEVANT BOARD ACTION(S):
On December 4, 2008, the Board of Directors authorized the President and Secretary to Amend the
Consultants Agreement with Psomas, in the amount of $43,125 for additional work to provide
design services and bid assistance for upgrades to the San Antonio PRS in conjunction with the
Zone Reconfiguration Project, Job No. 200710.
ATTACHMENTS:
Description: Type:
Paulus Progress Pay Report 1.pdf Paulus Progress Pay Hequest t Backup Material
YQRBA LINDA WATER DISTRICT
PROGRESS PAY REPORT
PROJECT San Antonio Pressure Reducing PROGRESS PAY REQUEST NO. 001
Station
LOCATION Yorba Linda, CA PROJECT NO. 200901 PAGE 1 OF 1 PAGES
CONTRACTOR Paulus Engineering, Inc. DATE 8127109
I ORIGINAL CONTRACT AMOUNT: $ 236,250.00
AUTHORIZED CHANGE. ORDERS: $ -
REVISED CONTRACT AMOUNT: $ 236,250.00
PROGRESS PAY ESTIMATE FOR PERIOD June 22, 2009 TO Augusl
PREVIOUS THIS MONTH
VALUE OF WORK COMPLETED $ - $ 59,06150 1 $
CHANGE ORDER WORK COMPLETED $ - $ - $
TOTAL VALUE OF WORK COMPLETED $ - $ 53,062.50 $
LESS RETENTION 10%
LESS OTHER DEDUCTIONS
NET EARNED TO DATE
LESS AMOUNT PREVIOUSLY PAID
BALANCE DUE THIS ESTIMATE
Electronic Wire Fees
NOTICE TO PROCEED
June 22, 2005
COMPLETION TIME
100
CALENDAR CLAYS
APPROVED TIME EXTENSIONS
0
CALENDAR DAYS
TOTAL CONTRACT TIME
100
CALENDAR DAYS
TIME EXPENDED TO DATE
71
CALENDAR HAYS
TIME REMAINING
29
CALENDAR DAYS
0
31, 2009
TO DATE
59.(�2.5D I
f
REQUESTED BY: DATE:
,Eason uI , V.P., Paulus Engineering, Inc.
APPROVED BY: DATE: 44/09
esus Sosa, Construction Inspector, YLWD
APPROVED BY: DATE:
Steve Conklin, Engineering Manager, YLWD
156.25
156.25
Meeting Date:
To:
From:
Presented By:
Prepared By:
Subject
SUMMARY:
AGENDA REPORT
September 10, 2009
Board of Directors
Ken Vecchiarelli, General
Manager
Steve Conklin, Engineering
Manager
Budgeted:
Total Budget:
Cost Estimate:
Funding Source:
Account No:
Job No:
Dept:
Reviewed by Legal:
Joe Polimino, Project Engineer CEQA Compliance:
ITEM NO. 7.6
Yes
$11.2M
11.2M
Water Revenue Bond
101 -2700
J- 200309
Engineering
No
MND
Progress Payment No. 16 for the Highland Reservoir Replacement Project
The Board of Directors awarded a contract to Schuler Engineering for construction of the Highland
Reservoir Replacement Project on April 10, 2008 and approved a project construction budget of
$11.2M on May 15, 2008. Submitted for consideration is construction Progress Payment No. 16.
STAFF RECOMMENDATION:
That the Board of Directors approve Progress Payment No. 16 in the net amount of $257,542.74 to
Schuler Engineering Corporation and 10% retention of $28,615.86 deposited to Citizens Business
Bank escrow account for construction of the Highland Reservoir Replacement Project, Job No.
200309.
DISCUSSION:
In accordance with the contract documents, Schuler Engineering Corporation submitted a request
for Progress Pay No. 16 for the period ending August 31, 2009. This progress pay request includes
payment for the continued installation of rebar and formwork for the base slab of the north -east
reservoir bay. The contractor also placed approximately 461 c.y. of concrete into prepared bottom
slab forms. The status of the construction contract with Schuler Engineering is as follows:
• The current contract amount is $9,384,921.44 and 769 calendar days (includes $335,575.44
in authorized change orders and additional 39 calendar days with approved time extensions).
• If approved, Progress Payment No. 16 is $286,158.60 (3.0% of the revised contract amount)
less 10% retention of $26,615.86 for a net payment of $257,542.74.
• If approved, total progress payments to date including retentions are $5,430,115.25 (57.9% of
the total revised contract amount).
• As of August 31, 2009, 456 calendar days were used (59.3% of the revised contract calendar
days).
Staff and Carollo Engineers, the District's construction management consultant, reviewed the
progress payment request and recommend payment. A copy of Progress Payment Request No. 16
is attached for your information.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors awarded a construction contract to Schuler Engineering on April 10, 2008 in
the amount of $9,049,346 for construction of the project. On May 15, 2008, the Board approved
execution of a Professional Service Agreement with Carollo Engineers in the amount of $605,856
for engineering support services, construction management and backup inspection services; a
Professional Service Agreement with Leighton Consulting Engineers in the amount of $86,200 for
geotechnical services, soils, concrete and materials testing; a Professional Service Agreement with
BonTerra Consulting in the amount of $22,251 for environmental compliance services; and
approved the construction budget in the amount of $11,200,000 for construction of the Highland
Reservoir Replacement Project. On April 9, 2009, the Board approved an amendment to BonTerra's
Professional Services Agreement in the amount of $15,700 for additional environmental compliance
services. The Board has approved 15 progress payments to date, the most recent of which was
approved on August 13, 2009.
ATTACHMENTS:
Description:
Schuler_ Engineering _PPR_16 Highland_Reservoir.pdf Schuler Engineering PPR16 Highland Res4� c
YORBA LINDA WATER DISTRICT PROGRESS PAY REPORT
PROJECT Highland Reservoir PROGRESS PAY REQUEST NO, 16
LOCATION Yorba Linda PROJECT NO. J- PAGE 1 OF 1 PAGES
200305
CONTRACTOR Schuler Engineering DATE August 31,2009
ORIGINAL CONTRACT AMOUNT: $ 9,049,346.00
AUTHORIZED CHANGE ORDERS: $ 335,575.44
REVISED CONTRACT AMOUNT: $ 9,384,921.44
PROGRESS PAY ESTIMATE FOR PERIOD
August 1, 2009
TO August 31, 2009
PREVIOUS
THIS MONTH
TO DATE
VALUE OF WORK COMPLETED
$ 4,814 798.73
$ 286,158.60 $
5,
CHANGE ORDER WORK COMPLETED
$ 329,157.92
$ - $
TOTAL VALUE OF WORK COMPLETED
$ 5,143,956.65
$ 286,158.6{3 $
5,
LESS RETENTION 10%
$
LESS OTHER DEDUCTIONS
AMOUNT DUE THIS ESTIMATE
$
4,
LESS AMOUNT PREVIOUSLY PAID
$
4,
BALANCE DUE THIS ESTIMATE
$
TO PROCEED
ICOMPLETION TIME
(APPROVED TIME EXTENSIONS
ITOTAL CONTRACT TIME
EXPENDED TO DATE
REMAINING
June 2,2008
730 CALENDAR DAYS
39 CALENDAR DAYS
769 CALENDAR DAYS
456 CALENDAR DAYS
313 CALENDAR DAYS
REQUESTED BY: /
k1l DATE:
'-eCHULtrik 149GMERING-CONTRACTOR
Chas Wick
APPROVED BY: CA � DATE:
ROLED- OWiVER'S- REPRESENTATIVE
Brian Wilson
APPROVED BY: _ DATE:
YLWD- OWNER
Steve Conklin
157.92
115.25
011.54
Meeting Date:
To:
From:
Presented By:
Prepared By:
Subject
SUMMARY:
AGENDA REPORT
September 10, 2009
Board of Directors
Ken Vecchiarelli, General
Manager
Steve Conklin, Engineering
Manager
Budgeted:
Total Budget:
Cost Estimate:
Funding Source:
Account No:
Job No:
Dept:
Reviewed by Legal:
Joe Polimino, Project Engineer CEQA Compliance:
ITEM NO. 7.7
Yes
$11.2M
$11.2M
Water Revenue Bond
102 -2700
200309
Engineering
No
MND
Approval of Change Order No. 3 for the Highland Reservoir Replacement
Project
The Board of Directors awarded a contract to Schuler Engineering for construction of the Highland
Reservoir Replacement Project on April 10, 2008 and approved a project construction budget of
$11.2M on May 15, 2008. Submitted for consideration is construction Change Order No. 3.
STAFF RECOMMENDATION:
That the Board of Directors approve Change Order No. 3 in the amount of $96,272.43 and 35
additional calendar days to Schuler Engineering Corporation for construction of the Highland
Reservoir Replacement Project, Job No. 200309.
COMMITTEE RECOMMENDATION:
The Planning- Engineering- Operations Committee discussed this item at its meeting held September
3rd and supports staff recommendation.
DISCUSSION:
In accordance with the contract documents, Schuler Engineering submitted Change Order No. 3,
which includes District - initiated changes, additions and modifications resulting from field conditions
encountered during the course of construction to date. Proposed Change Order No. 3 also includes
credits to the District for decreased depth of an 18 -inch storm drain and a welding credit for a 36-
inch valve. A copy of Change Order No. 3 is attached for your review and information. Details of
some other significant items in the change order are listed below.
Change Order Request (COR) 25: An existing 26" steel line was identified for removal and
replacement with a 30" line along the same alignment, in a trench up to 30 feet deep. However, the
alignment of the existing pipe skewed outside the alignment and trench line of the replacement
pipeline. The variation in alignment required additional deep- trench excavation and four extra days
of work by the contractor.COR 26: An existing 30" pipeline was deeper than shown on the drawing
at the new 30" storm drain crossing. This required the new storm drain to be installed deeper, with
additional shoring and excavation, at additional cost and time.
COR 33: The District received a call from a neighbor concerned about the height of the material
stockpile in front of her house across Highland Avenue. The District directed Schuler to take
additional measures to address the concern, resulting in the installation of a temporary concrete
barrier.
COR 40: An existing pipe was not the same diameter as indicated on the drawings and required the
fabrication of an additional transition piece. The existing pipe had a significantly larger than normal
concrete support block that had to be removed to facilitate the tie in and was not indicated on the
plans.
COR 47: As a result of the relocation of the overflow outlet and associated piping, a delay occurred
to the electrical contractor's installation of the electrical conduits. This work had to be performed in
six durations instead of three durations planned for the relocation work and other piping changes.
The three additional mobilizations also required additional materials.
The status of the construction contract with Schuler Engineering is as follows:
• The original contract is $9,049,346 and 730 calendar days starting June 2, 2008.
• Authorized change order to date amount is $335,575.44 (4.0% of the original contract amount)
and 39 calendar days (5.3% of original contract calendar days).
• If approved, Change Order No. 3 adds $96,272.43 (1.1 % of the original contract amount) and
35 calendar days (4.8% of original contract calendar days).
• If approved, the percentage of change orders to the original contract amount is 4.8 %.
• If approved, the percentage of original contract calendar days to additional days is 10.1 %.
• If approved, the revised construction contract amount is $9,481,193.87 and 804calendar days.
Staff and Carollo Engineers, the District's construction management consultant, reviewed the
change order request and recommend approval.
PRIOR RELEVANT BOARD ACTION(S):
On April 10, 2008, the Board awarded a construction contract to Schuler Engineering in the amount
of $9,049,346 for construction of the project. On May 15, 2008, the Board approved execution of a
Professional Service Agreement (PSA) with Carollo Engineers in the amount of $605,856 for
engineering support services, construction management and backup inspection services; a PSA
with Leighton Consulting in the amount of $86,200 for geotechnical services, soils, concrete and
materials testing; a PSA with BonTerra Consulting in the amount of $22,251 for environmental
compliance services; and approved the construction budget in the amount of $11,200,000 for
construction of the Highland Reservoir Replacement Project. The Board has approved two Change
Orders and fifteen Progress Pay Requests to date, the most recent of which was approved on
March 12, 2009, and August 13, 2009, respectively.
ATTACHMENTS:
Description: Type:
Highland Reservoir CO 3 Schuler Engineering. df Highland Reservoir Project Change Order No. 3 Backup Material
YORBA LINDA WATER DISTRICT
CHANGE ORDER NO.
DATE 8/18/09
Page
3
I of 2
Highland Reservoir
— -- - - - - - - - --- - ----------------------------- - - -
+INCREASE
CONTRACT NAME:
CONTRACT AMT.: $ 9,049,346.00 DAYS: 730
Replacement
TIME
+EXTENSION I
OR -REDUCTION
CONTRACT NO.: J-200309
PREV.APPRVD, $3$5,575.44 DAYS: 39
(DAYS)
CHANGES:
CONTRACTOR! Schuler Engineering
THIS CHANGE: $96,272.43 DAYS- 35
— ----- - ----
OWNER: Yorba Linda Water District
REVISED CONTRACT $9,481,193.87 DAYS: 804
AMT:
This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials,
and perform all work as necessary or required to complete the Change
Order items for a lump sum price agreed upon between the Contractor
and Yorba Linda Water District otherwise referred to as Owner-
0 days
------------ -
— -- - - - - - - - --- - ----------------------------- - - -
+INCREASE
CONTRACT
DESCRIPTION OF CHANGES
IOR
— DECREASE IN
TIME
+EXTENSION I
OR -REDUCTION
CONTRACT
(DAYS)
AMOUNT
COP 7: Decreased depth of 18" SD to MH #33
($456-00)
0 days
COP 18: 36" Valve, V-5, at point 35 welding credit
($5,552.00)
0 days
COR 23: Additional liner under reservoir
$1,500-00
3 days
COR 25: Excavate and remove 26" steel pipe, skewed under 30" SD
$14,315.00
4 days
-COR 26: Excavate and shore 30-SD under lower 30-steel pipe
$9,212.00
2 days
-COR 28: Dig & Ex V-255 2 times wrong location
$4,050.00
1 days
COP 29:Regrade Highland Ave before race on 4126109
$1,069.00
1 days
$625.00__
1 days
-COR 30: Remove & Recompact matl in NW Corner Res
COP 31: Fix Leak in 26" stl line during dig for 6" drain
$2,542.00
2 days
COR 32: Brace & cradle for 20" AC Pipe & Valve w/ kicker
$1,759.00
1 days
_COR 33: Place K-rail N. side Reservoir @ access road
$6,826.00
1 days
COP 34: 8 guard post
$6,772,00
2 days
COR 35: Grade & Place Recycled AC Material on public road
$3,361.54
1 days
COR 36: RFl #20 raise ohs HM to 420.5 from 414
$9,269.00
2 days
COP. 37: Add 4 sign on horse trail per YLWD
$598.00
0 days
COP 38: Extra Temp fence screening per YLWD
$1,331.00
1 days
COR 39: RF1 13 Pothole #4, tie-in#1
$0.00
0 days
COR 40: RFI 13 Pothole #11, tie-in #3, 18" on 30" Changes
$7,056.00
3 days
COR 41: RR 13 Pothole #2, tie-in #4, 30" re-alignment
$4,733.00
0 daysWWWWWWWW
COR 43: American Wrecking CO #1 -scrap price change
- ---------
$7,006.17
0 days
COR ": American Wrecking CO #2-delay time photos
$2,585.37
—i5)480-21
l.-days
COR 45: American Wrecking CO #3-thicker concrete
$6,009-00
3 days
3 days
COR 47: EIS CO#3 extra mobilizations
COP 49: Add 3 each 6" Ball float checks under vaults
$2,389.00
2 days
COP SO: Added 1" low flow air vac.
$987.00
1 days
COR 61: 30'V ditch extension
$2,805.14
0 days
c�� �1 %gib
f 771 5�
NET CHANGE
$96,272.43
35 days
REVISED CONTRACT AMOUNT AND TIME
$9,481,193.47
884 days
YGRBA LINDA WATER DISTRICT
CHANGE GIRDER NO.
DATE j
Page
91
of 2.__
The amount of the contract will be increased by the sum of 96_ 2_72.43 and the contract time shall be increased by thirty-five 35 calendar
days. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price specified for each item
including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if
any, for completion of the entire work on account of said Change Order. The Contractor agrees to furnish all labor and materials and perform all
other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the Change Order
items, This document will become a supplement of the contract and all provisions will apply hereto. It Is understood that the Change Order shall
be effective when approved by the Owner. This change order constitutes full, final, and complete compensation to the contractor for all costs,
expenses, overhead, profit, and any damages of every kind that the contractor may incur in connection with the above referenced changes in
the work, including any impact on the referenced work of any other work under the contract, any changes in the sequences of any work, any
delay to any work, any disruption of any work, any rescheduling of any work, and any other effect on any of the work under this contract. By
the execution of the change order, the contractor accepts the contract price change and the contract completion date change, if any, and
expressly waives any claims for any additional compensation, damages or time extensions, in connection with the above - referenced changes.
RECOMMENDED:
ACCENTED:
APPROVED:
Steve Conklin
Carollo DATE:
Engineers
Schuler DATE:
Engineering
/4
Yorba Linda DATE:
Water District
AGENDA REPORT
Meeting Date: September 10, 2009 Budgeted
To: Board of Directors
Funding Source:
From: Ken Vecchiarelli, General Account No:
Manager
Job No:
Presented By: Steve Conklin, Engineering Dept:
Manager
Reviewed by Legal:
Prepared By: Scott Moulton, Consultant CEQA Compliance:
ITEM NO. 7.8
N/A
Developer Funded
1025609
200044
Engineering
Yes
N/A
Subject: Grant Deed to SWEPI LP for 0.025 Acres on Lakeview Avenue
SUMMARY:
As part of the District's redevelopment of the Bastanchury Reservoir site for the Lakeview Reservoir
and Booster Pump Station, and development of the surrounding property by private development
companies, various property exchanges were required and approved by the District's Board. The
last of these is a proposed Grant Deed to relinquish to Shell Western E &P, Inc. (SWEPI LP)
approximately 0.025 acres that was acquired in a land swap with Bastanchury Holding, L.P. (Hover
Development Co.). When this parcel was acquired, a small portion of Lakeview Avenue came with
it. This action will transfer the "Lakeview Avenue Triangle" property to SWEPI LP, so that the road
can be dedicated to the City of Yorba Linda by SWEPI.
STAFF RECOMMENDATION:
That the Board of Directors authorize the President and Secretary to execute a Grant Deed, subject
to approval as to form by Legal Counsel, to relinquish to SWEPI LP approximately 0.025 acres that
was acquired in a land swap with Bastanchury Holding, L.P. (Hover Development Co.) for the
exchange of property at the Lakeview Reservoir and Booster Pump Station site.
COMMITTEE RECOMMENDATION:
The Planning- Engineering- Operations Committee discussed this item at its meeting held September
3rd and supports staff recommendation.
DISCUSSION:
This land exchange involved 3 parties: SWEPI LP, YLWD, and Hover Development Co. The net
effect of the exchanges is shown graphically by the four steps on the attached Exhibit A.
STEP 1 SWEPI LP Exchange
The Facility Phasing Agreement for the Vista Del Verde Development has a provision for the
exchange of property at the Bastanchury /Lakeview Reservoir site to facilitate the extension of
Lakeview Avenue through the development. In this exchange, YLWD gave Parcel A to get Parcel B.
This exchange was approved by the Board on 08/07/2003 and recorded 06/21/2006.
STEP 2 Hover Exchange
In a separate action, YLWD exchanged property with Bastanchury Holding, L.P. (Hover
Development Co.) to gain a larger site for the placement of the Lakeview Booster Pump Station
(Page Property). In this exchange, YLWD gave Parcel A to get Parcel B. This exchange was
approved by the Board on 08/25/2005 and recorded 10/25/2005.
STEP 3 SWEPI LP Exchange Follow -up Action
The result of the above two exchanges brought a new triangle of land to YLWD. The intent of the
Vista Del Verde exchange was to provide land for the Lakeview Reservoir and Booster Pump
Station, plus complete the deeds for transfer of the road to the City. It is in the interest of YLWD to
give up the Lakeview Avenue Triangle property in order to reduce YLWD's liability to provide
landscape and other improvements that will be required of SWEPI in the future by the City. In this
step, YLWD deeds Parcel A to SWEPI LP. A copy of the Grant Deed for this action is attached for
review.
STEP 4 Final Exchanae from SWEPI LP to the Ci
If the District Board approves the deed of Parcel A to SWEPI, SWEPI deeds the parcels A and B to
the City for Lakeview Avenue.
PRIOR RELEVANT BOARD ACTION(S):
The SWEPI LP exchange was approved by the Board on 08/07/2003 and recorded 06/21/2006. The
Hover exchange was approved by the Board on 08/25/2005 and recorded 10/25/2005.
ATTACHMENTS:
Description:
Type:
Exhibit A to SWEPI Property Exchange Agreement Exhibit A: Four Step Exchange to Dedicate Land to
Exhibit
L1 ].pdf Lakeview Avenue
Grant Deed to SWEPI Property Exchange Agreement
Grant Deed to SWEPI LP Exhibit
L1 ].pdf
EXHIBIT A
r
FOUR STEP EXCHANGE TO DEDICATE
d N
LAND TO LAKEVIEW AVENUE
A,�=
Lakeview Reservoir
STEP 1: SWEPI LP EXCHANGE
Booster Site-
CD
SWEPI gets parcel A from YLWD
-- - -�
YLWD gets parcel B from SWEPI
Other considerations in the agreement
cover future site improvements and access
during YLWD reservoir & booster construction.
t
N
STEP 2: HOVER EXCHANGE 'J <
Lakeview Reservoir �_ f
Hover gets parcel A from YLWD & Boaster Site
YLWD gets parcel B from Hover m
Other consideration in the agreement covers A
sale of a strip of land to Hover, development of
site improvements, and access during YLWD
i
reservoir & booster construction.
r N
STEP 3: SWEPI EXCHANGE FOLLOW UP ACTION
1 Lakeview Reservoir
SWEPI gets parcel A from YLWD & Booster Site &
F_.._.
Other: close three projects,. settle Village l & 11 issues? - A It
I
4
N
STEP 4: FINAL EXCHANGE SWEPI TO CITY
Lakeview Reservoir A F{..
City of Yorba Linda gets parcels A & B & Booster Site
from SWEPI for road. E
Other: SWEPI gets development. �° _ ° — - _.- _- ._.. -_ fin+
RECORDING REQUESTED BY:
SWEPI LP
3030 Saturn Street, Suite 101
Brea, CA 92821
AND WHEN RECORDED MAIL TO:
SWEPI LP
3030 Saturn Street, Suite 101
Brea, CA 92821
THIS SPACE FOR RECORDER'S USE ONLY
DOCUMENT TRANSFER TAX IS $ NONE
Computed on the consideration or value of property conveyed.
Computed on the consideration or value less liens or encumbrances remaining at
time of sale.
THE UNDERSIGNED HEREBY DECLARES
Signature of Declarant or Agent Determining Tax — Firm Name
GRANT DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Yorba
Linda Water District, a local public agency created and operating under authority of
Division 12 of the California Water Code ( "Grantor ") hereby GRANTS to SWEPI LP, a
Delaware limited partnership ( "Grantee "), the real property in the City of Yorba Linda,
County of Orange, State of California, being a portion of the `Bastanchury Rectangle"
parcel previously acquired by the District, as described on Exhibit "A" attached hereto,
and depicted on the schematic drawing on Exhibit "B" attached hereto.
This Grant is made and accepted subject to all liens, defects, and encumbrances of
record or apparent.
IN WITNESS WHEREOF, Grantor and Grantee have each caused this Grant Deed to
be signed by its authorized representative, with said Effective Date being the date of the
recordation hereof in the Official Records of Orange County, California. (ALL
SIGNATURES SHALL BE NOTARIZED.)
MP733901 - 1
Dated: _ , 2009 SIGNATURE OF GRANTOR:
YORBA LINDA WATER DISTRICT, a
Public Corporation
Name: John Summerfield
Title: President
M
Name: Kenneth R. Vecchiarelli
Title: General Manager
Dated: --12009 APPROVED AS TO FORM:
McCormick, Kidman & Behrens, LLP,
in
Name. Arthur G. Kidman, Esq.
Title: General Counsel
Dated: 2009 SIGNATURE OF GRANTEE:
SWEPI LP, a Delaware limited
partnership
go
Name: G. L. Basye
Its: Attorney -in -Fact
MP733901 - 2
STATE OF CALIFORNIA.
COUNTY OF ORANGE
On _ ....__.a__ ._. 200 , before me, _ the undersigned Notary Public
in and for said County and State, personally appeared, who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and
acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by
his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted.
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
STATE OF CALIFORNIA
COUNTY OF ORANGE
On
200_ , before me,
Notary Public
the undersigned Notary Public
in and for said County and State, personally appeared who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and
acknowledged to me that he/she /they executed the same in his /hex /their authorized capacit:y(ies), and that by
his/her /their signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted.
executed the instrument.
I certify under PENAI -TY OF PERJURY under the laws of the State of California that the foregoing paragraph i4
true and correct.
WITNESS my hand and {official seal.
S'L'ATE OF CALIFORNIA
C'OL TY OF ORANGE
On
200_ , before me,
Notary Public
the undersigned Notary Public
in and for said County and State, personally appeared who proved to me on the
basis of satisfactory evidence to be the persons) whose names) islare subscribed to the within instrument and
acknowledged to me that he /she /they executed the same in his /her /their authorized capacity0es), and that by
his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Notary Public
EXHIBIT "A'
LEGAL 1DESCIt)CP'1t"fON FOR STREET DEDICATION PURPOSES
That portion of Lot 4 in Block 7 of the Yorba Linda Tract, in the City of Yorba Linda, County of
Orange, State of California, as shown on a map filed in Book 5, Pages 1.7 and 18 of Miscellaneous
Maps in the office of the County Recorder of said county, described as follows:
Commencing at the southwesterly corner of Lot A of Tract No. 15572 as shown on a map filed Book
871, Pages 11 through 18, inclusive of said Miscellaneous Maps; thence along the Southerly and
Easterly lines of said Lot A the following courses: North 87 °18'22" East 22.34 feet to a point on a
non - tangent curve concave westerly having a radius of 1349.00 feet, a radial line to said point on
said curve bears South 89 °32'37" East and northerly 254.49 feet along said curve through a central
angle of 10 °4832" to a point on the boundary of said Tract No. 15572, also being the easterly line of
said Lot 4; thence continuing along said curve, northerly 30.70 feet through a central angle of
1 °18'14" to the southerly line of the northerly 218.00 feet of said Lot 4 and the TRUE POINT OF
131.11-GINNING; thence continuing along said curve, northerly 77.17 feet through a central angle of
3 °16'40" to the northerly line of the southerly 75.00 feet of the northerly 218.00 feet of said Lot 4;
thence along said northerly line, South 89 °41'35" East 23.77 feet to the easterly line of said Lot 4
and the boundary of said 'lzact No. 15572; thence along said easterly line and said tract boundary,
South 0 °05'24" West 75.00 feet to said southerly line of the northerly 218.00 feet; thence along said
southerly line, North 89 °41'35" West 5.91 feet to the True Point of Beginning.
As shown on Exhibit "B" attached hereto and by reference made a part hereof.
Contains an area of 1084 square feet more or less.
LAND
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By: J. Tran
Checked By: J. Suessljt
[N89 °41'35 'W 2535.08'1
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EXHIBIT "B,y
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PLANNING ENGINEERINC SURVEYING
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AGENDA REPORT
Meeting Date: September 10, 2009
To: Board of Directors
From: Ken Vecchiarelli, General
Manager
Presented By: Pat Grady, Assistant General
Manager
Prepared By: Cindy Navaroli, Interim Finance
Director
Subject: FY 2009/10 Budget Amendment
SUMMARY:
Budgeted
Funding Source:
Dept:
Reviewed by Legal:
CEQA Compliance:
ITEM NO. 8.1
N/A
N/A
Administration
N/A
N/A
Attached for the Board's review and consideration is an addendum to the FY 2009/10 adopted
budget. Should the Board approve a rate adjustment at the September 10, 2009 Public Hearing, it is
recommended the revenues statements for the FY 2009/10 Budget be amended accordingly.
STAFF RECOMMENDATION:
That the Board of Directors receive and file the addendum to the FY 2009/10 Budget.
DISCUSSION:
The addendum to the FY 2009/10 budget includes changes to revenues and expenses as outlined
in the 2009 Water Rate Report. Should the Board adopt a rate adjustment different from the
recommendations in the 2009 Water Rate Report, the budget addendum would be adjusted
accordingly.
The main changes to the adopted budget include:
• Increased water revenues reflecting the water rate increase effective September 14, 2009.
• The addendum reflects more clearly the use of reserves to fund capital outlay and the use of
bond fund monies to reimburse the District for salaries and expenses related to capital project
planning and administration, design, inspection and management.
The attached addendums are a supplement to the existing FY 2009/10 Budget document. The
pages within the Budget document being supplemented are located at the bottom of each
addendum page.
ATTACHMENTS:
Description: Type:
Summary of Income and Outlay.pdf Summary of Income and Outlay, amended Backup Material
Water and Sewer combined.pdf
water_ revenues_amended.pdf
Water expenses, amended.pdf
Water & Sewer, amended
Water revenues amended
Water expenses, amended
Backup Material
Backup Material
Backup Material
Summary of All Income /Expenses
and
Funding Requirements
Sources of Outla
Supplies & Services
Adopted
Amended
Variable Water Costs
Budget
Budget
Salary & Benefits
FY 2009/10
FY 2009/10
Sources of Income
154,500
154,500
Water Sales Revenue
18,723,793
25,162,185
Sewer Services Revenue
1,276,000
1,276,000
Property Tax Revenue
1,200,000
1,200,000
Other Revenue
896,000
896,000
Total Income
22,095,793
28,534,185
Sources of Outla
Supplies & Services
4,325,084
4,325,084
Variable Water Costs
12,612,700
12,612,700
Salary & Benefits
7,355,049
7,355,049
Temporary /Contract Labor
154,500
154,500
Depreciation
4,540,800
4,540,800
Interest on Long Term Debt
1,981,300
1,981,300
Other
201,800
201,800
Total Outlay
31,171,233
31,171,233
Income less Outlay
(9,075,440)
(2,637,048)
Additional cash requirements
Capital outlay (vehicles & equipment) (628,500)
Bond principal payments (825,000)
Funding requirements before approved adjustments (4,090,548)
75% depreciation not approved for funding in current year 2,959,312
Bond & Dev. Labor Reimbursement 300,000
Reserve transfer -in for vehicles & equipment 628,500
Board adjusted funding requirements for FY 2009110 (202,736)
C.I.P. and R &R Expenditures
Previously Approved - CIP Projects
Additional Projects Recommended
Total CIP & R &R Expenditures
13,767,000
13,767,000
4,560,000
4,560,000
18, 327,000
18,327,000
5 -Year CIP and R &R Projects No Change
Remaining Approved CIP & R &R Projects (FY 2010 -2012) 22,681,000
Additional Projects Requested (FY 2010 -2013) 21,960,000
Total Revised 5 -Year CIP 44,641,000
Page 19 - Original adopted budget
Revenues & Expenses (Water and Sewer)
Revenue (Operating):
Water Revenue (Residential)
Water Revenue (Commercial & Fire Det.)
Water Revenue (Landscape /Irrigation)
Sewer Charge Revenue
Locke Ranch Assessments
Other Operating Revenue
Total Operating Revenue:
Revenue (Non- Operating):
Annexation Revenue
Interest
Investments
Property Taxes
Other Non - Operating Revenue
Total Non - Operating Revenue:
Adopted
Budget
FY 2009/10
14,067,821
1,472,168
3,183,804
1,160,000
116,000
641,000
20, 640, 793
7,500
140,000
1,200,000
107,500
1,455,000
Amended
Budget
FY 2009/10
19,332,804
1,836,255
3,993,126
1,160,000
116,000
641,000
27, 079,185
7,500
140,000
1,200,000
107,500
1,455,000
Total Revenue 22,095,793 28,534,185
-- - - - - - - - -- - - - - - -
Original adopted budget, page 22
Revenues & Expenses (Water and Sewer cont'd)
Expenses (Operating):
Adopted Amended
Budget Budget
FY 2009/10 FY 2009/10
Depreciation & Amortization
4,540,800
4,540,800
Variable Water Costs (G.W., Import & Pow
12,612,700
12,612,700
Salary Related Expenses
7,355,049
7,355,049
Supplies & Services:
Communications
295,348
295,348
Contractual Services
1,101,345
1,101,345
Data Processing
127,635
127,635
Dues & Memberships
33,428
33,428
Fees & Permits
56,200
56,200
Board Election
-
-
Insurance
376,300
376,300
Materials
448,726
448,726
District Activities, Emp Recognition
15,200
15,200
Maintenance
414,150
414,150
Non - Capital Equipment
158,541
158,541
Office Expense
76,325
76,325
Professional Services
838,500
838,500
Training
70,150
70,150
Travel & Conferences
55,785
55,785
Uncollectible Accounts
52,000
52,000
Collection Agency Fee
3,500
3,500
Utilities
29,700
29,700
Vehicle Equipment
326,751
326,751
Supplies & Services Sub -Total
--
4,479,584
- - - - - - -
4,479,584
- - - - - - - -
Total Operating Expenses:
2859885133
2859885133
Expenses (Non- Operating):
Interest on Long Term Debt 1,981,300 1,981,300
Job Closing Expense 45,000 45,000
Other Expense 156,800 156,800
-- - - - - - - - -- - - - - --
Total Non - Operating Expenses: 2,183,100 2,183,100
Total Expenses 31,171,233 31,171,233
-- - - - - - - - - - - - - - - -
Income (Loss) (9,075,440) (2,637,048)
Original adopted budget, page 23
Revenue & Expenses (Water)
Revenue (Operating):
Water Revenue (Residential)
Water Revenue (Commercial & Fire Det.)
Water Revenue (Landscape /Irrigation)
Other Operating Revenue
Total Operating Revenue:
Revenue (Non- Operating):
Annexation Revenue
Interest
Investments
Property Taxes
Other Non - Operating Revenue
Total Non - Operating Revenue:
Total Revenue
Adopted Budget Amended Budget
FY 2009/10 FY 2009/10
14,067,821
19,332,804
1,472,168
1,836,255
3,183,804
3,993,126
637,900
637,900
19,361,693 25,800,085
500 500
127,400 127,400
1,092,000 1,092,000
105,500 105,500
1,325,400 1,325,400
20,687,093 27,125,485
-------------- - - - - --
Original adopted budget, page 24
Expenses (Operating):
Revenue & Expenses (Water cont'd)
Adopted Budget Amended Budget
FY 2009/10 FY 2009/10
Depreciation & Amortization
3,945,750
3,945,750
Variable Water Costs (G.W., Import & Power)
12,612,700
12,612,700
Salary Related Expenses
6,538,008
6,538,008
Supplies & Services:
---------------
2,175,800
- - - --
2,175,800
Communications
268,694
268,694
Contractual Services
964,090
964,090
Data Processing
116,148
116,148
Dues & Memberships
30,068
30,068
Fees & Permits
50,160
50,160
Board Election
-
-
Insurance
342,433
342,433
Materials
427,424
427,424
District Activities, Emp Recognition
13,832
13,832
Maintenance
384,362
384,362
Non - Capital Equipment
139,910
139,910
Office Expense
66,775
66,775
Professional Services
760,575
760,575
Training
61,518
61,518
Travel & Conferences
48,892
48,892
Uncollectible Accounts
47,320
47,320
Collection Agency Fee
3,185
3,185
Utilities
27,027
27,027
Capital Projects Allocation
---------------
- --
Supplies & Services Sub -Total
---------------
4,032,096
4,032,096
- - - --
Total Operating Expenses:
27,128,554
27,128,554
Expenses (Non- Operating):
Interest on Long Term Debt
1,981,300
1,981,300
Job Closing Expense
40,000
40,000
Other Expense
154,500
154,500
Total Non - Operating Expenses:
---------------
2,175,800
- - - --
2,175,800
Total Expenses
29,304,354
---------------
29,304,354
- - - --
Income (Loss)
(8,617,261)
(2,178,869)
Contributed Capital
190,962
190,962
Original adopted budget, page 25
Meeting Date:
Subject:
ATTACHMENTS:
090909 FA - Minutes.doc
ITEM NO. 10.2
AGENDA REPORT
September 10, 2009
Finance - Accounting Committee
(Beverage /Summerfield) Alternate: Mills
Minutes of meeting held September 9, 4:00 p.m. (To be provided at the
meeting.)
Meeting scheduled for October 13, 4:00 p.m.
Description:
FA Mtg Minutes 09/09/2009
Type:
Minutes
ITEM NO. 10.2.
MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
September 9, 2009
A meeting of the Finance - Accounting Committee was called to order by Director
Beverage at 4:00 p.m. The meeting was held at the District's Administrative Office at
1717 E Miraloma Ave, Placentia CA 92870.
COMMITTEE
Director Michael J. Beverage, Chair
Director John W. Summerfield
1. PUBLIC COMMENTS
None.
2. DISCUSSION ITEMS
STAFF
Ken Vecchiarelli, General Manager
Cindy Navaroli, Interim Finance Director
Sandi Van Etten, Senior Accountant
2.1. FY 2008/09 Audit Update
Staff reported that the audit went well and should be complete within the
next week. There will be an exit meeting with the auditors on September
15th
2.2. GASB 43 & 45 Update
Ms. Navaroli reported on the liability that we need to record for Other Post -
Employment Benefits (OPEB). She indicated that even though the liability
does have to be recorded on the books, it does not have to be funded at
this time. The Committee discussed the various options available.
2.3. Bond Covenants
Ms. Navaroli reported that the preliminary year end numbers for FY 08/09
are not in compliance with our bond covenant ratio. However, if the rate
increase being proposed for FY 09/10 passes, the District should be in
compliance with the ratio requirement in FY 09/10.
2.4. Monthly Portfolio Reports for July 2009
Keith Khorey of Wells Capital Management was contacted prior to the
Committee meeting and reported to Staff that the portfolio remains stable.
The Committee had no questions for Mr. Khorey.
2.5. Future Agenda Items and Staff Tasks
Staff was asked to contact Wells Capital regarding several of the short
term securities we have as investments that appear to be international
investments. Staff was directed to explore domestic options if available at
the same yield.
1
3. ADJOURNMENT
3.1. The Committee adjourned at 4:30 p.m. The next regular meeting of the
Finance - Accounting Committee will be held October 13, 2009 at 4:00 p.m.
Meeting Date:
Subject:
ATTACHMENTS:
ITEM NO. 10.4
AGENDA REPORT
September 10, 2009
Planning- Engineering- Operations Committee
(Mills /Armstrong) Alternate: Beverage
Minutes of meeting held September 3, 4:00 p.m.
Meeting scheduled for October 1, 4:00 p.m. has been rescheduled to October
7, 4:00 p.m.
Description: Type:
090309 PEO - Minutes.doc PEO Mtg Minutes 09/03/09 Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
PLANNING - ENGINEERING - OPERATIONS COMMITTEE MEETING
September 3, 2009
A meeting of the Planning- Engineering- Operations Committee was called to order by
Director Mills at 4:00 p.m. The meeting was held at the District's Administrative Office
at 1717 E Miraloma Ave, Placentia CA 92870.
COMMITTEE
Director William R. Mills, Chair
Director Paul R. Armstrong
1. PUBLIC COMMENTS
None.
2. ACTION CALENDAR
STAFF
Ken Vecchiarelli, General Manager
Steve Conklin, Engineering Manager
Lee Cory, Operations Manager
Ken Mendum, Ops Superintendent
John DeCriscio, Chief Plant Operator
2.1. Recycled Water Project Planning Study.
Mr. Conklin reported on the grant process and availability from the State
Board for 50% funding of facility planning studies for the use of recycled
water. He noted that there is a backlog at the State on processing the
grant applications. The Committee suggested that we ask our consultant,
Townsend Public Affairs to assist after submittal. After discussion, the
Committee supported staff's recommendation to apply for a grant and to
proceed with the study.
2.2. Grant Deed to SWEPI LP for 0.025 Acres on Lakeview Avenue.
Mr. Conklin reported on the property exchanges that have taken place in
the process of the District constructing the new Lakeview Reservoir and
Pump Station, and private development in the surrounding area. He noted
that the last piece needed to complete the process is the transfer of 0.025
acres to SWEPI LP. After discussion, the Committee supported staff's
recommendation to approve and execute documents to relinquish the
property.
2.3. Approval of Change Order No. 3 for Highland Reservoir Replacement
Project.
Mr. Conklin reported on the status of construction for Highland Reservoir
and the changes that have had to be addressed in the process of
demolishing the old reservoir and removing or replacing the many old
pipelines around the site. After discussion, the Committee supported
staff's recommendation for approval of Change Order No. 3 in the amount
of $96,272.43 and the addition of 35 calendar days for completion.
1
3. DISCUSSION ITEMS
3.1. History Document of Yorba Linda Reservoir No. 1 (Highland Reservoir)
Mr. Conklin reported that the history document for the old reservoir as
required for the Historic American Engineering Record has been
completed, and copies provided to local repositories. The District's office
copy was provided at the meeting for review by the Committee. Director
Armstrong requested he be provided an electronic copy for his library.
3.2. Monthly Groundwater Production and Purchased Water Report
Mr. DeCriscio reported that the District has reported 99.9% of its
commitment for CUP pumping for MWD. He also noted that for the month
of August the District's water demand was 8.9% under budget and 9.2%
under for July and August combined. These numbers reflect the positive
conservation efforts from our customers.
3.3. Monthly Preventative Maintenance Program Report
Mr. Mendum reported on the status of the PM program and that the
District is on schedule in essentially all efforts. It was noted by the
Committee that the work of the District to keep all of the many
components of the water and sewer system in top operating condition
goes unnoticed by our customers. It was suggested that staff look at
providing information on our PM program in an upcoming newsletter. Mr.
Cory also reported that staff is proceeding with the Fats, Oil and Grease
(FOG) Permit and Fee Program for food establishments with sewer
connections in the District. This follows the Board's approval to proceed
with the program last year.
3.4. Monthly MWDOC Managers Meeting Summary Report
Mr. Vecchiarelli reported on the August 27 meeting that he attended. He
noted that MWDOC indicated that essentially all member agencies are
using less water than the demand targets established by MWDOC.
3.5. Monthly OC Groundwater Producers Meeting Summary Report
Mr. Conklin reported on the August 12 meeting that he and Mr. DeCriscio
attended.
3.6. Status Report on Capital Projects in Progress
Mr. Conklin reported on the status of capital projects in planning, design
and construction.
3.7. Future Agenda Items and Staff Tasks
None.
4. ADJOURNMENT
4.1. The meeting was adjourned at 5:53 p.m. The next regular meeting of the
Planning- Engineering- Operations Committee was scheduled for Wed.,
October 7, 2009 at 4:00 p.m., at the request of the Committee.
2
ITEM NO. 10.5
AGENDA REPORT
Meeting Date: September 10, 2009
Subject: Public Information - Technology Committee
(Collett /Beverage) Alternate: Armstrong
Minutes of meeting held September 1, 4:00 p.m.
Meeting scheduled for October 6, 4:00 p.m.
ATTACHMENTS:
Name: Description: Type:
090109 PIT - Minutes.doc PIT Mtg Minutes 09/01/09 Minutes
MINUTES OF THE
YORBA LINDA WATER DISRICT
PUBLIC INFORMATION - TECHNOLOGY COMMITTEE MEETING
September 1, 2009
A meeting of the Public Information - Technology Committee was called to order by
Director Collett at 4:00 p.m. The meeting was held at the District's Administrative Office
at 1717 E Miraloma Ave, Placentia CA 92870.
COMMITTEE STAFF
Director Ric Collett, Chair Ken Vecchiarelli, General Manager
Director Michael J. Beverage Pat Grady, Assistant General Manager
Cindy Botts, Management Analyst
1. PUBLIC COMMENTS
None.
2. DISCUSSION ITEMS
2.1. Version 2 of the Summer Customer Newsletter
Mrs. Botts presented the second version of the Summer 2009 Newsletter
for the Committee's comments. Both Director Beverage and Director
Collett suggested changes for the layout of the newsletter. Director Collett
also suggested some changes in verb tense to the "Rate Changes" story,
due to the fact that the Newsletter will not arrive in the mail to the majority
of the customers until after the water rate public hearing.
2.2. Conservation Ordinance Permanent Signage Update
Mrs. Botts updated the Committee on the status of the encroachment
permit that the District was working on with the City of Yorba Linda and
asked the Committee's input on the eight sites approved by the City for
the District's signs. The Committee discussed the sign locations and
rotation for maximum effectiveness.
2.3. Conservation Ordinance Monthly Statistics
Mrs. Botts updated the Committee on the monthly non - compliance
activities, waiver and hotline calls.
2.4. Public Events Update
Mrs. Botts updated the Committee on the upcoming public events
sponsored by the District and reported on the success of the District's
sponsorship of the Yorba Linda Relay for Life. Director Collett asked if the
District had been approached by the Yorba Linda Country Club, Rotary
Clubs, or other community groups about sponsoring their yearly events.
Mrs. Botts replied that the District has not yet been contacted by any
groups that were not already scheduled. She reiterated that if the event
occurs within our service area, Staff is more than happy to support the
event.
1
2.5. Computerized Maintenance and Management System Update
Mr. Grady updated the Committee on the status of the CMMS system. He
explained that this software will track everything the District does in the
field, from labor to the use and reordering of parts. A kickoff meeting with
a consultant was held to develop the Request for Proposal for the
purchasing and integration of the system. Staff will present a summary
report of the proposals received to the Committee for consideration. Mr.
Grady estimated that the system should be fully integrated by July 2010.
2.6. Future Agenda Items and Staff Tasks
None.
3. ADJOURNMENT
3.1. The meeting was adjourned at 5:15 p.m. The next regular meeting of the
Public Information - Technology Committee will be held October 6, 2009 at
4:00 p.m.
2
ITEM NO. 12.1
AGENDA REPORT
Meeting Date: September 10, 2009
Subject: Meetings from September 11, 2009 thru October 31, 2009
ATTACHMENTS:
Description: Type:
BOD Activities Calendar.pdf BOD Activities Calendar Backup Material
Board of Directors Activity Calendar
Event Date Time Attendance by:
Seatember 2009
Personnel -Risk Management Committee Meeting
Mon, Sep 14
4:OOPM
Armstrong /Summerfield
Yorba Linda City Council
Tue, Sep 15
6:30PM
Armstrong
MWDOC Board
Wed, Sep 16
8:30AM
Staff
Exec - Admin- Organizational Committee Meeting
Wed, Sep 16
4:OOPM
Summerfield /Mills
OCWD Board
Wed, Sep 16
5:OOPM
Staff
City of Placentia Ad Hoc Committee Meeting
Thu, Sep 17
4:OOPM
Beverage
MWDOC /OCWD Ad Hoc Committee Meeting
Tue, Sep 22
4:OOPM
Mills /Collett
Yorba Linda Planning Commission
Wed, Sep 23
7:OOPM
Summerfield
Board of Directors Regular Meeting
Thu, Sep 24
8:30AM
Collett
Citizens Advisory Committee Meeting
Mon, Sep 28
8:30AM
Summerfield /Mills
October 2009
Public Information - Technology Committee Meeting
Tue, Oct 6
4:OOPM
Collett /Beverage
Yorba Linda City Council
Tue, Oct 6
6:30PM
Mills
MWDOC /MWD Workshop
Wed, Oct 7
7:30AM
Staff
Planning- Engineering- Operations Committee Meeting
Wed, Oct 7
4:OOPM
Mills /Armstrong
OCWD Board
Wed, Oct 7
5:OOPM
Staff
Board of Directors Regular Meeting
Thu, Oct 8
8:30AM
Personnel -Risk Management Committee Meeting
Mon, Oct 12
4:OOPM
Armstrong /Collett
Finance - Accounting Committee Meeting
Tue, Oct 13
4:OOPM
Beverage /Summerfield
Yorba Linda Planning Commission
Wed, Oct 14
7:OOPM
Collett
Executive - Admin- Organizational Committee Meeting
Tue, Oct 20
4:OOPM
Summerfield /Mills
Yorba Linda City Council
Tue, Oct 20
6:30PM
Armstrong
MWDOC Board
Wed, Oct 21
8:30AM
Staff
OCWD Board
Wed, Oct 21
5:OOPM
Staff
Board of Directors Regular Meeting
Thu, Oct 22
8:30AM
Citizens Advisory Committee Meeting
Mon, Oct 26
8:30AM
Yorba Linda Planning Commission
Wed, Oct 28
7:OOPM
Summerfield
9/4/2009 2:23:09 PM
ITEM NO. 13.1
AGENDA REPORT
Meeting Date: September 10, 2009
Subject: Diamond Valley Lake Tour - September 25, 2009
STAFF RECOMMENDATION:
Authorize Directors and such staff members of the District as approved by the General Manager to
attend the tour.
ATTACHMENTS:
Name: Description:
DMV Lake Tour.doc Event Flyer
ITINERARI
Inspection Trip of Diamond Valley Lake
Sponsored by
The Municipal Water District of Orange County
The Metropolitan Water District Of Southern California
Friday, September 25, 2009
7:30 a.m. Assemble at Municipal Water District of Orange County
18700 Ward Street, Fountain Valley
(southeast corner of Ward and Ellis)
for coffee, rolls and brief presentation
8:30 a.m. Depart for Diemer Treatment Plant, Yorba Linda
9:15 a.m. Arrive Robert B. Diemer Treatment Plant
The Diemer plant is one of Metropolitan's three "blend" plants,
meaning that it normally receives a blend of water from the State
Water Project (SWP) and the Colorado River Aqueduct (CRA)
(the other two "blend" plants are Weymouth and Skinner). Water
is fed to this plant via the Yorba Linda Feeder, which originates
in the northern portion of Metropolitan's distribution system, and
the Lower Feeder, which originates at Lake Mathews.
Robert B. Diemer came to Metropolitan in 1929 as a distribution
engineer. He later became MWD's General Manager and Chief
Engineer from 1952 to 1961. Diemer participated in the
dedication of the Robert B. Diemer Treatment Plant on
January 15, 1964.
11:00 a.m. Depart Diemer for Hemet
12:00 noon Arrive Diamond Valley
Diamond Valley Lake, located near Hemet, was designed to be
filled from two sources: the Colorado River and state water from
Northern California. Colorado River water is delivered by the
Colorado River Aqueduct via the San Diego Canal and water
from the California State Water Project comes from the east
branch of the State Water Project via Lake Silverwood, by
gravity, through a 12 -foot diameter, 45 -mile pipeline called the
Inland Feeder. DVL began tilling in 2000 and has a capacity of
800,000 acre -feet, which secures six months emergency
storage south of the San Andreas Fault.
Drive across East Dam
1:00 P.M. Delicious box lunch at East Marina
1:30 p.m. Depart East Marina for Water Campus
2:00 p.m. Arrive Water Campus for self guided tours of
MWD Visitor Center and Western Center of
Archaeology and Paleontology
3:30 p.m. Depart DVL for Fountain.
5:00 p.m. Arrive MWDOC Offices, Fountain Valley
In case of an emergency during this trip, telephone contact to our group may be made through MWD's 24 -hour
Security Watch Center, (800) 555 -5911, Inform the operator that you are calling for a Diamond Valley Lake
inspection trip guest with Director Jack Foley and Inspection Trip Manager Pat Chandler. You may also reach
the group directly by calling Pat's cell (213) 910 -4218 or emailing at pchandleramwdh2o.com.
Participation on this inspection trip by certain California governmental officials will constitute a reportable gift
under California and local ethics laws. The estimated reportable expense for this trip is $70.00. Please contact
Pat Chandler at pchandler @mwdh2o.com or call (213) 217 -7772 to receive the actual reportable expense if you
are required to report gifts.
ITEM NO. 13.2
AGENDA REPORT
Meeting Date: September 10, 2009
Subject: CA -NV AWWA Fall Conference - October 5 -8, 2009
STAFF RECOMMENDATION:
Authorize Directors and such staff members of the District as approved by the General Manager to
attend the conference.
ATTACHMENTS:
Description:
CA -NV AWWA Fall Conference.pdf Conference Flyer
An Invitation From the Chair..... 2
Committee Division Meetings.... 4
Special Offers ................. 5
Conference Events............ 6 -7
Technical Tours ................ 8
Table of Contents
General Information ............ 9
Hotel Information ..............
9
Technical Programs .........
10 -20
Future Conference Locations....
16
Water Fair ...................
22
AWWA Membership
Application ..................24
Registration Form ............. 27
Advertising Opportunities ..... BC
CONFEUNCE OVERVIEW
Monday, October 5, 2009
Registration .................7:00 am — 5:30 pm
CA -NV Committee Meetings ...7:00 am — 7:00 pm
Exhibitor Set -Up .............12:00 pm - 5:00 pm
Tuesday. October 6, 2009
Registration .................7:00
am
— 5:30
pm
Technical Tour ...............8:00
am -
12:00
pm
Exhibitor Set -Up ..............8:00
am —
am
- 1:00
pm
Opening Session ............9:00
am —
11:00
am
Awards Ceremony ..........10:15
am -
11:15
am
Keynote Luncheon ...........11:30
am
— 1:30
pm
Technical Sessions ............1:30
pm
— 5:00
pm
Exhibits .....................3:00
pm
- 7:00
pm
Exhibitor Hosted Reception
....5:30
pm
— 6:30
pm
Prize Drawing ........................6:00
pm
YP Mixer .. ...........................8:00
pm
Wednesday. October 7, 2009
Registration .................7:00 am —
5:30 pm
Technical Sessions ...........8:00
am —
5:00 pm
Technical Tour ..............8:00
am —
12:00 pm
Exhibits ....................9:00
am —
3:00 pm
Exhibitor Hosted Luncheon
............12:00
pm
Prize Drawing ........................1:00
pm
Committee Meetings ..........3:00
pm —
6:00 pm
Membership Social ...........5:00
pm
- 7:00 pm
Thursday. October 8. 2009
Registration .................7:00 am
— 5:00 pm
Technical Sessions ...........8:00
am
— 5:00 pm
Governing Board Meeting
....8:00 am —
12:00 pm
Certification Exams ..........8:00
am —
11:00 am
Committee Meetings .........9:00
am
— 8:00 pm
I look
to Sign up
Be Sur chn1Ca1.�our!
fora 1e detailsl
lSee pg gfior
i
0
For more information visit our website at www.ca- nv- awwa.org or call the Section office at (909) 481 -7200.
Occupation Codes (please check one): ❑ WTR Water Utility ❑ CTR Contractor ❑ CNS Consultant ❑ MFG Manufacturer ❑ REF Manufacturer's
Representative ❑ DIS Distributor ❑ EDU Educator ❑ RES Research Laboratory ❑ FED Federal Government ❑ STA State Government
❑ LOC Local Government ❑ STU Student ❑ OTH Other
❑ I am a speaker at this conference Date: Time:
NAME (how you would like it to appear on your badge)
Title
Address
Phone
Email
Company.
City
Fax
AWWA Member #
State Zip
(same rate as T YP e Of Membership (check one) 0 Individual 0 Organization O erator /Admin. 0 Utility O 1 am a CWEA /NWEA Member
CA -N V -AW WA
Cmmnlimpntary Snnnca /enact lif attanrlinnl Member)
(Household members ONLY Not to be used for water industry personnel)
Check #
Payable to CA -NV AWWA (U.S. funds)
PO #
Must be accompanied by a physical copy of the PO
Credit Card: ❑ Visa ❑ MC ❑ AMEX
Card No.:
Exp. Date:
Name on Card:
Authorized Signature:
Billing Zip Code:
Must be Zip Code in which credit card statement is mailed
For copy of receipt, please write email address:
Please submit registration by September 1st for CPS (ERG)-Education
Reimbursement Grant ERG#
❑ am a" Young r°ruiessional" (YP)
❑ First Time Attendee
❑ am a New Member of AWWA
If not included with registration fee
[]Keynote Luncheon
............................$50
[]Exhibitor Hosted Lunch
............................$40
Subtotal $
[]Tues. Technical Tour, October 6 .. $35
❑ Wed. Technical Tour, October 7 .. $35
Subtotal $
• A •
❑ FREE (I am an individual, operator or
administrative AWWA member)
❑ $20 (My utility /organization is an
AWWA member or I am not an
AWWA member)
Registration Total: Special Events Total:
Meal Total: Contact Hours:
Total Amount Due:
Registrations must be accompanied by payment (Check, Money Order,
Credit Card or physical Purchase Order) and received prior to September
5, 2009. Onsite registration will be required after September 5, 2009.
Refund requests must be submitted in writing to the Section office by
September 5, 2009. A $50 administrative fee will be deducted from all
refunds. NO Refunds granted after September 5, 2009.
CA -NV AWWA Contact Information: 10574 Acacia Street, Suite D6, Rancho
Cucamonga, CA 91730 • Phone: (909) 481 -7200 • Fax: (909) 291 -2107
www.ca- nv- awwa.org
CA -NV AWWA 10574 Acacia St., Ste. D6 • Rancho Cucamonga, CA 91730 • Phone: (909) 481 -7200 Fax: (909)291 -2107 • www.ca- nv- awwa.org
Super
On or Before
On or Before
Onsite: After
Early Bird
Aug. 5th
Sept. 5th
Sept. 5th
Subtotals
❑ FULL REGISTRATION
(Thru 7/15)
$410
$460
$540
$
Includes Keynote &
Exhibitor Hosted Lunch
$360
SPECIAL REGISTRATIONS
❑ Tues. One -Day, October 6
$215
$255
$290
$
Includes Keynote Luncheon
❑ Wed. One -Day, October 7
$215
$255
$290
$
Includes Exhibitor Hosted Lunch
❑ Education Package (Wed. & Thur.)
$250
$290
$325
$
Includes Technical Sessions & Exhibit Hall Entrance
No Meals
No Meals
No Meals
❑ Thurs. One -Day, October 8
$120
$150
$190
$
❑ Exhibits Only: Tues., October 6
$35
$45
$55
$
$
❑ Exhibits Only: Wed. October 7
$35
$45
$55
❑ STUDENT or RETIREE REGISTRATION
FREE
FREE
FREE
$ FREE
(See Meal Options)
Check #
Payable to CA -NV AWWA (U.S. funds)
PO #
Must be accompanied by a physical copy of the PO
Credit Card: ❑ Visa ❑ MC ❑ AMEX
Card No.:
Exp. Date:
Name on Card:
Authorized Signature:
Billing Zip Code:
Must be Zip Code in which credit card statement is mailed
For copy of receipt, please write email address:
Please submit registration by September 1st for CPS (ERG)-Education
Reimbursement Grant ERG#
❑ am a" Young r°ruiessional" (YP)
❑ First Time Attendee
❑ am a New Member of AWWA
If not included with registration fee
[]Keynote Luncheon
............................$50
[]Exhibitor Hosted Lunch
............................$40
Subtotal $
[]Tues. Technical Tour, October 6 .. $35
❑ Wed. Technical Tour, October 7 .. $35
Subtotal $
• A •
❑ FREE (I am an individual, operator or
administrative AWWA member)
❑ $20 (My utility /organization is an
AWWA member or I am not an
AWWA member)
Registration Total: Special Events Total:
Meal Total: Contact Hours:
Total Amount Due:
Registrations must be accompanied by payment (Check, Money Order,
Credit Card or physical Purchase Order) and received prior to September
5, 2009. Onsite registration will be required after September 5, 2009.
Refund requests must be submitted in writing to the Section office by
September 5, 2009. A $50 administrative fee will be deducted from all
refunds. NO Refunds granted after September 5, 2009.
CA -NV AWWA Contact Information: 10574 Acacia Street, Suite D6, Rancho
Cucamonga, CA 91730 • Phone: (909) 481 -7200 • Fax: (909) 291 -2107
www.ca- nv- awwa.org
CA -NV AWWA 10574 Acacia St., Ste. D6 • Rancho Cucamonga, CA 91730 • Phone: (909) 481 -7200 Fax: (909)291 -2107 • www.ca- nv- awwa.org
Super
On or Before
On or Before
Onsite: After
Early Bird
Aug. 5th
Sept. 5th
Sept. 5th
Subtotals
❑ FULL REGISTRATION
(Thru 7/15)
$470
$530
$610
$
Includes Keynote &
Exhibitor Hosted Lunch
$420
SPECIAL REGISTRATIONS
❑ Tues. One -Day, October 6
$245
$285
$325
$
Includes Keynote Luncheon
❑ Wed. One -Day, October 7
$245
$285
$325
$
Includes Exhibitor Hosted Lunch
❑ Education Package (Wed. & Thur.)
$280
$320
$360
$
Includes Technical Sessions & Exhibit Hall Entrance
No Meals
No Meals
No Meals
❑ Thurs. One -Day, October 8
$140
$175
$210
$
❑ Exhibits Only: Tues., October 6
$45
$55
$65
$
$
❑ Exhibits Only: Wed. October 7
$45
$55
$65
❑ STUDENT or RETIREE REGISTRATION
FREE
FREE
FREE
$ FREE
(See Meal Options)
Check #
Payable to CA -NV AWWA (U.S. funds)
PO #
Must be accompanied by a physical copy of the PO
Credit Card: ❑ Visa ❑ MC ❑ AMEX
Card No.:
Exp. Date:
Name on Card:
Authorized Signature:
Billing Zip Code:
Must be Zip Code in which credit card statement is mailed
For copy of receipt, please write email address:
Please submit registration by September 1st for CPS (ERG)-Education
Reimbursement Grant ERG#
❑ am a" Young r°ruiessional" (YP)
❑ First Time Attendee
❑ am a New Member of AWWA
If not included with registration fee
[]Keynote Luncheon
............................$50
[]Exhibitor Hosted Lunch
............................$40
Subtotal $
[]Tues. Technical Tour, October 6 .. $35
❑ Wed. Technical Tour, October 7 .. $35
Subtotal $
• A •
❑ FREE (I am an individual, operator or
administrative AWWA member)
❑ $20 (My utility /organization is an
AWWA member or I am not an
AWWA member)
Registration Total: Special Events Total:
Meal Total: Contact Hours:
Total Amount Due:
Registrations must be accompanied by payment (Check, Money Order,
Credit Card or physical Purchase Order) and received prior to September
5, 2009. Onsite registration will be required after September 5, 2009.
Refund requests must be submitted in writing to the Section office by
September 5, 2009. A $50 administrative fee will be deducted from all
refunds. NO Refunds granted after September 5, 2009.
CA -NV AWWA Contact Information: 10574 Acacia Street, Suite D6, Rancho
Cucamonga, CA 91730 • Phone: (909) 481 -7200 • Fax: (909) 291 -2107
www.ca- nv- awwa.org
CA -NV AWWA 10574 Acacia St., Ste. D6 • Rancho Cucamonga, CA 91730 • Phone: (909) 481 -7200 Fax: (909)291 -2107 • www.ca- nv- awwa.org